It is getting closer for Hashdex, a company that manages crypto assets, to start an exchange-traded fund (ETF) in the US that will track cryptocurrencies. The company sent an updated S-1 form to the U.S. Securities and Exchange Commission (SEC) on October 1. Hashdex is working on a “one-stop-shop” ETF that will focus on Bitcoin and Ethereum at first, as they are the two most valuable digital assets on the market.
The updated file shows that the SEC is still looking into the plan. This comes after they asked for more time to look into the fund’s possible listing earlier. If it gets approved, the Hashdex Nasdaq Crypto Index US ETF will make it easy for buyers to get into the best cryptocurrencies through a single offering.
At first, the ETF will only hold Bitcoin and Ethereum because those are the only cryptocurrencies that are currently in the Nasdaq Crypto US Index. The filing does say, though, that the fund might grow to include more digital coins in the future, based on how regulations change.
Experts in the field are becoming more interested in the idea of crypto index ETFs. These ETFs offer a variety of cryptocurrency investments, similar to standard index funds that follow the success of the stock market. Instead of buying individual cryptocurrencies, buyers can put their money into a fund that holds a number of digital assets.
Along with Hashdex, Franklin Templeton, an asset manager, has also applied for a product that is similar. Its Franklin Crypto Index ETF is meant to track the CF Institutional Digital Asset Index. This fund, like Hashdex’s, focuses on Bitcoin and Ethereum right now because those are the only digital currencies that the SEC has allowed for inclusion in ETFs.
As the number of people who use crypto ETFs grows, they are quickly becoming a big force in the stock market. Over $20 billion has been put into cryptocurrency exchange-traded funds (ETFs) just in 2024. This has helped the ETF market grow, and by the end of September, it had assets worth more than $10 trillion in the US alone.
Hashdex’s proposed ETF is an answer to the rising need for a wider range of cryptocurrency investments. It would make investing in the fast changing digital asset market easier for investors.
