Nasdaq, the renowned stock exchange, has officially filed with the Securities and Exchange Commission (SEC) to list an Ethereum ETF in partnership with Brazilian asset manager Hashdex, who expressed interest in holding both spot ether and futures contracts.
Nasdaq Partners with Hashdex on ETH ETF Application
The partnership will result in the creation of the Hashdex Nasdaq Ethereum ETF, managed and controlled by Toroso Investments. As a registered commodity pool operator with the Commodity Futures Trading Commission and a member of the National Futures Association, Toroso Investments holds an influential position in this venture.
The proposed Ether ETF has gotten attention for its intention to hold both futures contracts and spot funds. This strategic move is in response to the SEC’s approval of futures contracts while rejecting spot products.
According to the 19b-4 form, the Hashdex fund aims to reflect daily changes in the Nasdaq Ether Reference Price and will invest in ETH, Ether futures contracts listed on the CME, cash, and cash equivalents.
The fund will diversify its holdings across Spot Ether, Ether Futures Contracts, and cash. This approach intends to lessen the fund’s reliance on the spot market, thereby mitigating potential manipulation concerns in unregulated Ether spot exchanges. Instead, the fund will rely on Ether Futures Contracts and Ether futures EFPs traded on the regulated CME Market, ensuring high transparency and oversight levels.
Hashdex’s CEO Confident in Future Spot BTC ETF Approval
Earlier this year, Marcelo Sampaio, the CEO and co-founder of Hashdex, stated that his firm prefers to cooperate with regulators rather than take legal action against them. This was a reference to Grayscale Investments, who won a lawsuit against the SEC after its proposed spot bitcoin ETF was rejected. Sampaio also expressed confidence in the eventual approval of a spot Bitcoin ETF, although the timeline and circumstances are still uncertain.
Meanwhile, Ark Invest and 21Shares made a pioneering application last week with the SEC for this initiative to launch the ARK 21Shares Ethereum ETF. This product is set to become the first US ETF backed by Ethereum, the second most valuable cryptocurrency after Bitcoin.
The applications occur amidst a growing competition to approve the first US spot Bitcoin ETF. Despite multiple rejections due to fraud and price manipulation concerns, many analysts view Grayscale Investments’ recent lawsuit victory against the SEC as a potential catalyst for future approvals of such funds.