Spot Bitcoin ETF: A New Contender
Crypto asset management firm Hashdex has thrown its hat in the ring, aiming to secure a spot for a Bitcoin ETF in the US. Their application to the U.S. Securities and Exchange Commission (SEC) focuses on a Bitcoin futures ETF holding spot Bitcoin.
Understanding ETFs and Their Crypto Counterparts
ETFs, or exchange-traded funds, are traded on stock markets, with their worth tied to a group of underlying assets like stocks, bonds, or commodities. Bitcoin ETFs, in this context, trace the value of BTC, making them tradable on traditional stock exchanges as opposed to cryptocurrency exchanges.
Hashdex’s Unique Approach
Moving away from the norm, Hashdex’s strategy won’t lean on the Coinbase surveillance sharing agreement. Instead, they’re set to acquire spot Bitcoin directly from physical exchanges within the CME market. This approach got clearer when NYSE Arca’s 19b-4 filing with the U.S. SEC highlighted Hashdex’s plans to encompass spot Bitcoin in its futures ETF, rebranding it as Hashdex Bitcoin ETF.
Industry Voices Weigh In
James Seyffart, a renowned Bloomberg analyst, shared his observations on Hashdex’s unique approach. He pinpointed that the proposed strategy emphasizes transactions exclusively for related positions. Essentially, futures contracts would be exchanged for equivalent spot exposure, sidestepping direct cash buys from exchanges.
Given the heat on SEC Chair Gary Gensler, including challenges from the Grayscale lawsuit, the Ethereum futures submission, and BlackRock’s engagement with the Coinbase surveillance sharing agreement, Seyffart envisions a stronger probability of SEC nod.
Others in the industry, such as Nate Geraci of The ETF Store, investor Alistair Milne, and finance legal expert Scott Johnsson, are echoing similar sentiments. The general consensus is that Hashdex’s approach might soothe some of the SEC’s concerns about potential Bitcoin market manipulation and liquidity issues.
SEC’s Silence
To date, the SEC, led by Chair Gary Gensler, remains tight-lipped on both the influx of Ethereum ETFs and the potential sanction of a spot Bitcoin ETF in the upcoming months.
