Traditional financial institutions that have filed crypto ETF applications have focused on a particular market (spot or futures). However, a recent NASDAQ filing shows that asset manager Hashdex is taking a different approach, which could be a game changer in the Ethereum ETF race.
NASDAQ proposes to list Ethereum ETF
According to the application filed with the US Securities and Exchange Commission (SEC), the stock exchange plans to list and trade shares of the Hashdex Nasdaq Ethereum ETF, which will be managed and controlled by Toroso Investments LLC.
Interestingly, the fund will hold both Ether futures contracts and spot Ether. The move by asset manager Hashdex is unique, given that other asset managers have either filed to offer a spot Ether ETF or an Ether futures ETF or filed applications to offer both separately. However, Hashdex is looking to offer a fund holding both Ether futures contracts and a spot Ethereum ETF.
The fund’s sponsors believe that the combination of Ether futures contracts and spot Ether will help reduce the risk of market manipulation (a major concern of the SEC) and provide the market with a “regulated product” that provides access to Ethereum. Tracks price. The fund will help US investors gain exposure to spot ether without relying on “unregulated products, offshore regulated products, or indirect strategies such as investing in publicly traded companies that hold ether.”
In meeting the requirement of a surveillance-sharing agreement (SSA) for the proposed ETF, Nasdaq stated in the application that the Chicago Mercantile Exchange (CME) would be used to track the price of Ethereum because the CME is a “regulated market.” represents. Of significant size.
Furthermore, the fund is expected to hold physical Ether. However, the sponsors intend to purchase these tokens not from “unregulated ether spot exchanges” but from the Exchange for Physical (EFP) transactions of the CME market.
The move is similar to Hashdex’s application to combine the spot Bitcoin ETF with its existing Bitcoin futures ETF. Hashdex said in its application that CME will be used to track the spot Bitcoin price and all Bitcoin purchases will be from CME’s EFP.
ETH started with ups and downs on Wednesday. Source: ETHUSD on tradingview.com
Is Hashdex Throwing Other Asset Managers Under The Bus?
The phrase “unregulated spot exchange” is mentioned several times in Nasdaq’s application, which appears to be a direct attack on Coinbase and other asset managers’ applications. It is worth mentioning that some of the other asset managers, including Ark Invest, that have applied to offer Ethereum-related ETFs have chosen Coinbase as their custodian.
Thus, Hashdex does not feel right labeling Coinbase as an “unregulated spot exchange,” as this could undoubtedly influence the SEC’s decision when dealing with these applications.
Additionally, asset managers like BlackRock choosing Coinbase for their SSA and custodian had already sparked controversy as many said the SEC would be reluctant to approve an application in which Coinbase would directly or indirectly be involved. Get involved because there is a lawsuit going on against crypto. exchange.
While many may appreciate the “innovative approach” of Hashdex, there is a need to be mindful of how this approach may hinder the application of others and its ultimate impact on the crypto industry in general.
Featured image from iStock, chart from tradingview.com
source: www.newsbtc.com
