Hashdex is seeking approval to launch a crypto index ETF for Bitcoin and Ethereum, using the Nasdaq Crypto Settlement Price Index (NCIS) to track prices.
It would be the first multi-asset crypto fund in the US and another landmark for the crypto industry.
While only allowing BTC and ETH, the fund could add more coins in the future, depending on the regulatory landscape and if the coins meet specific criteria.
Renowned crypto asset manager Hashdex has filed for an S-1 registration for its Hashdex Nasdaq Crypto Index US ETF, a step forward in the company’s plan to launch a crypto index for Bitcoin (BTC) and Ethereum (ETH) in the US.
The S-1 filing details Hashdex’s business operations, asset management, custody, fees, and more crucial information. It comes a month after the company submitted a 19b-4 form in mid-June, which the US Securities and Exchange Commission (SEC) acknowledged.
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The First Crypto Index ETF
Hashdex’s crypto index ETF would work by tracking the Nasdaq Crypto Settlement Price Index (NCIS), a daily closing value of the Nasdaq Crypto Index (NCI).
The NCI, as the name suggests, tracks the price of a large portion of several large-cap crypto assets. Nasdaq developed it in partnership with Hashdex to expose investors to the crypto market. It’s mostly made of Bitcoin and Ethereum but includes altcoins like Litecoin, Chainlink, Uniswap, Filecoin, and Bitcoin Cash.
Regarding custody, the trust’s core custodians for Bitcoin and Ethereum would be BitGo, Coinbase Custody, Fidelity, and Gemini.
It would be the first US crypto index ETF to hold both BTC and ETH if approved. Note that the fund would be weighed according to each coin’s free-float market cap. In simpler words, it would be weighed according to each crypto’s circulating supply, which would be around 75.3% BTC and 23.7% ETH.
All Eyes on Ethereum ETFs
While it would only track BTC and ETH (and doesn’t include ETH staking), Hashdex’s crypto index ETF could add more coins in the future —if they meet specific criteria required by the SEC, which include regulatory approval, presence on regulated exchanges, presence of a
futures market, etc.
The filing reads:
If any crypto asset other than bitcoin and ether becomes eligible for inclusion in the Index, the Sponsor will transition to a sample replication strategy, with only bitcoin and ether in the same proportions determined by the Index.
Hashdex
Hashdex’s S-1 filing comes two days after spot Ethereum exchange-traded funds (ETFs) began trading in the US stock market with a bang. They soared on debut, amassing over US$1B by the end of the day.
Related: Ethereum ETFs Soar on Debut, Amassing Over $1 Billion on First Trading Day
Despite the bullish sentiment, Ethereum is still underperforming, down to US$3,178 (AU$4,847), a decrease of 7.43% on the daily chart, according to data from CoinMarketCap.
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