LatAm Firm Hashdex Joins Bitcoin Spot ETF Scrum With Distinct Plan

Hashdex, a Latin American firm, has entered the race to launch a Bitcoin spot exchange-traded fund (ETF). The firm has a unique plan for its ETF, which aims to provide investors exposure to multiple cryptocurrencies. With the increasing popularity of cryptocurrencies in the region, Hashdex’s entry into the market could provide investors with more options for accessing and investing in digital assets.

Title 1: Hashdex Joins the Race for Approval of Bitcoin ETF
Title 2: Hashdex Proposes Unique Approach for Bitcoin ETF Approval

Hashdex, the largest crypto asset management firm in Latin America, has officially entered the competition to secure approval from the Securities and Exchange Commission (SEC) to operate a Bitcoin exchange-traded fund (ETF). The SEC has traditionally ignored or rejected Bitcoin ETF applications, particularly for spot markets. However, when investment giant BlackRock submitted its own application for a Bitcoin spot ETF in June, it sparked renewed interest within the industry.

Following BlackRock’s lead, several other companies submitted their own ETF applications, with most of them adopting BlackRock’s approach. These applications proposed using a surveillance-sharing agreement with Coinbase, a renowned exchange platform, to monitor potential cases of fraud. However, Hashdex has chosen a different strategy for its ETF application.

Hashdex plans to acquire spot Bitcoin from the regulated Chicago Mercantile Exchange (CME) market through its existing Bitcoin futures ETF. This approach sets Hashdex apart from other applicants who rely on unregulated spot exchanges. In its official filing with the SEC, Hashdex states that it intends to “use the Exchange for Physical (EFP) Transactions to acquire and dispose of spot Bitcoin.” This strategy aims to provide financial regulators with greater assurances by tracking cryptocurrency prices within a tightly regulated market.

With $435 million under management, Hashdex prides itself on being the first company to launch a crypto index ETF in Brazil and the world. Alistair Milne, the founder of Altana Digital Currency Fund, believes that Hashdex’s unique approach would be hard for the SEC to reject. While other applicants have pursued surveillance-sharing agreements with Coinbase, Hashdex questions the effectiveness of such strategies in addressing the SEC’s concerns.

Despite different strategies, all applicants share the same goal: convincing American regulators that they are actively taking steps to protect their financial products from market manipulation. Hashdex’s proposal, acquiring spot Bitcoin from a regulated market, offers a novel perspective in the quest for Bitcoin ETF approval.

In conclusion, Hashdex’s entry into the race for a Bitcoin ETF approval showcases the growing interest and competition within the crypto industry. By proposing a unique approach to acquiring spot Bitcoin, Hashdex aims to provide regulators with stronger assurances. As the SEC evaluates these applications, the crypto community eagerly awaits a decision that could potentially open the doors to greater institutional investment in the crypto market. Stay tuned for more updates on this evolving story.

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