Hashdex Applies for Spot Ethereum ETF Launch
Date: 2023-09-13 Author: Dima Zakharov Categories: BLOCKCHAIN
Hashdex's Ethereum ETF Proposal
Hashdex has submitted a formal proposal to the U.S. Securities and Exchange Commission (SEC) for the creation of an Exchange-Traded Fund (ETF) linked to Ethereum. This innovative ETF will be backed by futures contracts traded on the Chicago Mercantile Exchange (CME) and is set to be listed on the Nasdaq exchange.
Nasdaq Listing for Hashdex Nasdaq Ethereum ETF
Nasdaq, a reputable exchange platform, will be the home for the Hashdex Nasdaq Ethereum ETF once it receives regulatory approval. The proposal indicates Nasdaq as the ideal listing destination for this pioneering financial instrument.
Sponsorship and Regulatory Oversight
Hashdex has secured sponsorship for the ETF through Toroso Investments, a member of the National Futures Association (NFA) and licensed by the Commodity Futures Trading Commission (CFTC). This sponsorship ensures that the ETF will be held to high regulatory standards.
Pricing Based on Nasdaq Ether Reference Price
The pricing mechanism for this innovative ETF will be tied to the Nasdaq Ether Reference Price, ensuring transparency and reliability in tracking Ethereum's market performance.
Addressing Concerns of Manipulation
The official proposal highlights that by investing in futures and holding cash in addition to spot Ethereum, the fund aims to mitigate concerns related to potential market manipulation on unregulated cryptocurrency exchanges. This approach underscores Hashdex's commitment to investor protection.
Growing Interest in Ethereum-based ETFs
It's worth noting that Hashdex is not the only player seeking to introduce Ethereum-based ETFs. In August, ARK Invest and 21Shares submitted their own applications for ETFs based on Ethereum futures. This growing interest in Ethereum ETFs demonstrates the increasing institutional interest in the cryptocurrency space.
SEC's Review of Similar Products
Before Hashdex's proposal, the SEC had received applications for similar products from six other firms, including Grayscale, ProShares, Bitwise, VanEck, and Valkyrie. These developments highlight the regulatory scrutiny surrounding cryptocurrency ETFs.
