Hashdex has proposed the creation of an exchange-traded fund (ETF) to the Securities and Exchange Commission (SEC) that would hold both Bitcoin and Ethereum. The ETF, named Hashdex Nasdaq Crypto Index US ETF, aims to give investors exposure to the two leading cryptocurrencies, following their distribution in the Nasdaq Crypto Index.
This move represents a significant milestone in incorporating digital assets into traditional financial instruments, potentially making cryptocurrencies more accessible to a wider range of investors. The ETF’s composition mirrors the Nasdaq Crypto Index, with Bitcoin and Ethereum making up around 70.54% and 29.46% of the fund, respectively.
The fund will follow a market-cap-weighted strategy, aligning with the index’s representation of the broader cryptocurrency market. It will be backed by custodians Coinbase Custody Trust Company and BitGo Trust Company, along with maintaining cash reserves.
Although the initial focus is on Bitcoin and Ethereum, the ETF may explore adding more digital assets in the future, pending SEC approval. This proposal comes at a time of favorable regulatory conditions, with the SEC recently approving Bitcoin spot ETFs and the potential introduction of Ethereum ETFs in the U.S. market.
SEC Chair Gary Gensler’s recent comments to a Senate committee suggest that Ethereum ETFs could begin trading as early as this summer.