Hashdex Joins Spot Bitcoin ETF Race in US

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Sat, 08/26/2023 - 09:46
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The anticipation for a spot Bitcoin exchange traded fund (ETF) product in the United States is brewing in a unique way as a new player, Hashdex, has submitted a 19b-4 filing through NYSE Arca to list a related product on the public bourse.

The Hashdex product is dubbed the Hashdex Bitcoin ETF and it takes a major detour from other products that have a surveillance sharing agreement (SSA) with Coinbase Global Inc. According to the filing, the Hashdex Bitcoin ETF is structured such that it can purchase its Bitcoin product directly on exchanges within the Chicago Mercantile Exchange market.

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The Hashdex Bitcoin ETF appears as something that is more intricate than it appears. Analysts who have reviewed the filing, including Bloomberg's James Seyffart, noted that the strategy involves exclusively conducting exchange for related positions transactions. Notably, this exchange will encompass swapping futures contracts for an equivalent spot exposure instead of direct cash purchases from exchanges.

The spot Bitcoin ETF terrain is heating up in a unique way with the U.S. Securities and Exchange Commission (SEC) noting it will not be issuing any feedback for the product until next year. The massive expectation is now brewing with more heightened anticipation that market investors are watching closely.

Is Bitcoin ETF era close?

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The Bitcoin ETF clamor is one that has spanned multi-years as the SEC has rejected a number of applications from top investment managers in the industry, including but not limited to Ark Invest, Fidelity and VanEck.

At this time, most of the firms whose products have been rejected are now in line for feedback from the market regulator. The major twist now is that the likes of BlackRock are also in the race, lending a new narrative that might shift the paradigm in favor of the product in the U.S.

With the likely perfection being put into the applications filed thus far, the belief that the spot Bitcoin ETF era is close is notably rekindled.