Hashdex, a crypto asset management firm, has thrown its hat into the Bitcoin ETF ring with a distinctive approach.
Hashdex’s recent application to the U.S. Securities and Exchange Commission (SEC) seeks approval for a Bitcoin futures ETF that holds spot Bitcoin, marking a departure from recent filings that relied on the Coinbase surveillance sharing agreement.
Unlike its competitors, Hashdex is charting a course that bypasses the conventional route of depending on third-party agreements for market surveillance.
Instead, the company plans to source spot Bitcoin directly from physical exchanges within the CME market.
This innovative strategy aims to address concerns over market manipulation and liquidity, which have been key factors in the SEC’s cautious stance on approving Bitcoin ETFs.
Typically, ETFs function as investment funds traded on stock markets, deriving their value from an underlying basket of assets.
Hashdex’s proposal, however, introduces a novel approach to the ETF landscape. By incorporating spot Bitcoin in its Bitcoin futures ETF, the company aims to enhance transparency and mitigate potential risks associated with market manipulation.
James Seyffart, an analyst at Bloomberg, noted that Hashdex’s strategy involves conducting exchange-related positions transactions.
This technique involves exchanging futures contracts for an equivalent spot exposure, a move that could resonate positively with regulators.
The timing of this application seems strategic, as it coincides with mounting pressure on the SEC and its Chair, Gary Gensler, stemming from various fronts, including the Grayscale lawsuit, Ethereum futures submissions, and institutional adoption trends.
The unique nature of Hashdex’s Bitcoin ETF filing has garnered attention from industry specialists.
Figures like Nate Geraci, President of The ETF Store, prominent investor Alistair Milne, and finance attorney Scott Johnsson have all expressed optimism about the proposal’s potential to address SEC concerns and expedite approval.
They believe Hashdex’s approach could pave the way for wider acceptance of Bitcoin ETFs.
Despite the excitement and speculation surrounding Hashdex’s application, the SEC and Gary Gensler remain tight-lipped.
If approved, Hashdex’s innovative Bitcoin futures ETF could mark a turning point in how investors access and trade Bitcoin through traditional stock exchanges.
Breaking: NYSE files a modification to another ETF, to be now called the Hashdex Bitcoin ETF
Their application is unique in that it will not use Coinbase, they will use prices and acquire spot BTC via CME.
It will hold a mixture of spot & futures positions
Hard to reject imo pic.twitter.com/K1ABKKZX5o— Alistair Milne (@alistairmilne) August 25, 2023
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