Nasdaq's Hashdex mixed Ether ETF filing joins crypto ETF race

The Nasdaq banal speech has submitted an exertion to the Securities and Exchange Commission (SEC) seeking support to database an Ethereum Exchange-Traded Fund (ETF) offered by Hashdex, an plus absorption company. This ETF is designed to see a operation of spot ether holdings and futures contracts successful its portfolio and pioneering a caller attack to cryptocurrency concern wrong the regulatory framework. 

Known arsenic the Hashdex Nasdaq Ethereum ETF, this concern money is the archetypal '33 Act Ethereum futures filing of futures Ethereum nether the ‘33 Act and is overseen and supervised by Toroso Investments. Toroso Investments is registered arsenic a commodity excavation relation with the Commodity Futures Trading Commission (CFTC) and is besides a subordinate of the National Futures Association.

The existent surge successful cryptocurrency ETF applications has placed important accent connected whether the projected funds mean to see futures contracts oregon spot assets. While the SEC has granted support for the former, the second remains unapproved. Fund managers look to beryllium exploring a middle-ground option, investigating their chances successful this regulatory landscape.

The superior concern extremity of the Hashdex money is to guarantee that its shares reflector the regular fluctuations successful the Nasdaq Ether Reference Price. To execute this objective, the money intends to allocate its assets to investments successful ether, ether futures contracts traded connected the CME, arsenic good arsenic currency and currency equivalents. Nasdaq said successful the 19b-4 form:

"Instead of holding 100% spot Ether, which could marque it much susceptible to terms manipulation successful the spot market, the Fund volition clasp a premix of Spot Ether, Ether Futures Contracts, and cash,"

The Fund aims to alteration its reliance connected the spot marketplace and code worries regarding imaginable manipulation successful unregulated Ether spot exchanges by including Ether Futures Contracts and currency successful its holdings, it elaborated.

Related: Franklin Templeton files for spot Bitcoin ETF

Hashdex joined the competition for a spot Bitcoin (BTC) exchange-traded money successful the United States. However, Hashdex’s attack differs from caller filings arsenic it won’t beryllium connected the Coinbase surveillance sharing agreement, opting to get spot Bitcoin from carnal exchanges wrong the CME market.

In the erstwhile week, some Ark Invest and 21Shares submitted applications to the SEC for a spot ether ETF, a benignant of ETF besides being pursued by VanEck. The SEC has frankincense acold deferred its determinations connected each the applications it has received for spot cryptocurrency funds.

Magazine: Crypto regulation: Does SEC Chair Gary Gensler person the last say?