Nasdaq, the global stock exchange operator, has applied for approval from the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) that would track the performance of ethereum and other cryptocurrencies. The proposed ETF, if approved, could provide investors with a convenient and regulated way to gain exposure to the rapidly growing world of digital assets. This move showcases Nasdaq’s commitment to embracing the potential of blockchain technology and meeting the rising demand for cryptocurrency investment opportunities.
Nasdaq Files with SEC for Ethereum ETF in Partnership with Hashdex
Nasdaq, the well-known stock exchange, has officially filed an application with the Securities and Exchange Commission (SEC) to list an Ethereum ETF. This move is in partnership with Brazilian asset manager Hashdex, which has expressed interest in holding both spot ether and futures contracts.
The collaboration between Nasdaq and Hashdex will result in the creation of the Hashdex Nasdaq Ethereum ETF. The ETF will be managed and controlled by Toroso Investments, an influential registered commodity pool operator and member of the National Futures Association. With Toroso Investments’ expertise, the ETF is expected to make a significant impact in the market.
One notable aspect of the proposed Ether ETF is its intention to hold both futures contracts and spot funds. This strategic decision is in response to the SEC’s approval of futures contracts, while rejecting spot products. By including both types of investments, the Hashdex fund aims to reflect daily changes in the Nasdaq Ether Reference Price. The ETF will invest in ETH, Ether futures contracts listed on the CME, cash, and cash equivalents.
To mitigate potential manipulation concerns in unregulated Ether spot exchanges, the fund will diversify its holdings across Spot Ether, Ether Futures Contracts, and cash. This approach aims to reduce reliance on the spot market and ensure high levels of transparency and oversight. The use of regulated Ether Futures Contracts and Ether futures EFPs traded on the CME Market adds an extra layer of security.
Hashdex’s CEO, Marcelo Sampaio, has expressed confidence in the future approval of a spot Bitcoin ETF. He emphasized his firm’s preference for cooperation with regulators rather than legal action, referring to Grayscale Investments’ recent lawsuit victory against the SEC after its proposed spot bitcoin ETF was rejected. While the timeline and circumstances for a spot Bitcoin ETF approval remain uncertain, Sampaio is optimistic about the eventual outcome.
In addition to Nasdaq and Hashdex’s ETF application, other players in the market are vying for the first US ETF backed by Ethereum. Ark Invest and 21Shares made a groundbreaking application last week to launch the ARK 21Shares Ethereum ETF. This product aims to capitalize on the popularity and value of Ethereum, the second most valuable cryptocurrency after Bitcoin.
These ETF applications come amidst a growing competition to approve the first US spot Bitcoin ETF. Despite previous rejections due to concerns of fraud and price manipulation, Grayscale Investments’ lawsuit victory has sparked hope among many analysts. They believe that future approvals of such funds may be on the horizon.
In conclusion, the collaboration between Nasdaq and Hashdex for the proposed Ethereum ETF brings new opportunities for investors interested in the crypto space. With a diverse portfolio that includes spot ether, futures contracts, and cash, the Hashdex Nasdaq Ethereum ETF aims to provide investors with a regulated and transparent investment option. As the battle for the first US spot Bitcoin ETF continues, these developments set the stage for future advancements in the cryptocurrency market.
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