Key Highlights:
- π Hashdex submits a Bitcoin futures ETF application to the U.S. SEC.
- π Their approach does not rely on the Coinbase surveillance sharing agreement.
- π€ Experts believe this move could alleviate SEC concerns over Bitcoin market manipulation.
π Hashdexβs New Strategy for Bitcoin ETF
Hashdex has thrown its hat in the ring, vying for a place in the Bitcoin exchange-traded fund (ETF) landscape in the U.S. They’ve taken a noteworthy step by submitting an application for a Bitcoin futures ETF, which, interestingly, plans to hold spot Bitcoin.
For those unfamiliar, ETFs are stock market-traded investment funds π. Their value hinges on an underlying array of assets like stocks or commodities. Bitcoin ETFs, in particular, mirror BTCβs value but get traded on standard stock platforms rather than exclusive crypto exchanges πͺ.
Note that this includes restrictions capping the notional amount of spot BTC exposure based on the size of the spot market trading volume, something the SEC has alluded to being a solution to prong 2 of the sig markets test in prior denials... https://t.co/nazBvVs3WG pic.twitter.com/dJa6tUjAVd
— Scott Johnsson (@SGJohnsson) August 25, 2023
π§ A Distinctive Approach to Bitcoin ETF
What sets Hashdex apart? Their proposal doesn’t lean on the popular Coinbase surveillance sharing agreement. Instead, the plan is to procure spot Bitcoin directly from physical exchanges operating in the CME market. As revealed by a 19b-4 NYSE Arca filing to the U.S. SEC, Hashdex is set to incorporate spot Bitcoin in its Bitcoin futures ETF. Additionally, a rebranding move will see a ticker change to ‘Hashdex Bitcoin ETF’ π.
Bloomberg analyst, James Seyffart, points out the notable strategy where Hashdex will exclusively swap futures contracts for a similar spot exposure, bypassing direct cash purchases from exchanges π.
*VERY INTERESTING* 19b-4 filed by NYSE on DEFI ETFβ¦
— Nate Geraci (@NateGeraci) August 25, 2023
Changing name to Hashdex Bitcoin ETF & updating strategy to hold spot btc.
Notably, this filing isnβt relying on Coinbase SSA.
Instead will secure spot btc through CME Marketβs Exchange for Physical.https://t.co/dBLjCNvAki pic.twitter.com/kmXETHUqB0
π‘ Expert Opinions on Hashdexβs Application
Considering the current spotlight on SEC’s Chair, Gary Gensler, due to various pressures including the Grayscale lawsuit and Ethereum futures submission, Seyffart predicts a heightened probability of the SEC nodding in favor π. This sentiment resonates with other industry experts, such as Nate Geraci, president of The ETF Store, and finance attorney Scott Johnsson, who reckon that this novel strategy could potentially ease SEC’s apprehensions about Bitcoin market maneuverings and liquidity.
Yet, despite the buzzing speculation, Gary Gensler and the SEC have kept mum about this new spot Bitcoin ETF proposal, as well as the surge in Ethereum ETFs and the potential green light for a spot Bitcoin ETF this year π€«.
π₯ Join the Biggest Cryptocurrency Exchange Tournament for Your Shot at 8,000,000 USDT in Prizes!
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Sergio Richi
Editor, Logll Tech News