Asset manager Hashdex has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for the first-ever spot Exchange-Traded Fund (ETF) tracking multiple digital assets.
The proposed ETF aims to provide investors with diversified exposure to numerous digital assets. The final deadline for SEC approval will be March 2025, noted James Seyffart, analyst at Bloomberg Intelligence.
Update: @hashdex has filed an S-1 for their Crypto Index ETF. Will start with just #Bitcoin & #Ethereum but can add other assets if and when approved by the SEC. https://t.co/W3uHyv9MYn pic.twitter.com/DFXouwu4IK
— James Seyffart (@JSeyff) July 24, 2024
The S-1 form is a crucial regulatory step for any company wishing to go public with an ETF. The form contains detailed information about the ETF’s structure, the underlying assets, and the financial health of the issuer.
Diversify ETF Holdings Helps Mitigate Volatility
Hashdex’s multi-asset ETF is looking to track the performance of a basket of digital currencies, including but not limited to Bitcoin and Ethereum at first but can later add Solana and Cardano.
The firm’s decision to diversify the ETF’s holdings across several major digital assets is intended to mitigate the volatility associated with single-asset ETFs.
This strategic move could attract a broader range of investors, from those who are risk-averse to those who are seeking diversified exposure to the digital asset market.
ETFs have become a popular investment vehicle because they offer a convenient and regulated way to gain exposure to various assets.
A spot ETF tracking multiple digital assets would provide retail and institutional investors with an accessible entry point into the crypto space without the need for direct custody of the digital assets themselves.
The filing also highlights the growing demand for regulated cryptocurrency investment products.
ETH ETFs Approved This Week
Ether’s spot ETFs launched in the U.S. on July 23 after months of rejection. In January, the SEC approved approved 11 Bitcoin spot ETFs.
The approval has sparked a frenzy of activity in the crypto market. Major players are strategically positioning themselves, anticipating a surge in demand.
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