Hashdex, a firm specializing in managing cryptocurrency assets, recently announced the submission of a revised S-1 filing to the U.S. Securities and Exchange Commission (SEC) for a Nasdaq Crypto Index US ETF.
Changes in Hashdex’s Crypto ETF Pursuit
This latest amendment comes after Hashdex’s original S-1 filing, which was updated in October following a request from the SEC for additional review time.
The ETF is set to include Bitcoin (BTC) and Ethereum (ETH) initially, the two primary assets tracked by the Nasdaq Crypto US Index. There is potential for the portfolio to expand to encompass more digital currencies over time, as outlined in the filing.
Hashdex’s aspirations align with broader initiatives by prominent players like Franklin Templeton and Grayscale. Franklin Templeton’s proposed ETF, akin to Hashdex, includes BTC and ETH.
In contrast, Grayscale’s Digital Large Cap Fund seeks a diversified approach, including alternative cryptocurrencies such as Solana (SOL), Avalanche (AVAX), and Ripple (XRP) in its portfolio.
Observing Trends in BTC and ETH ETFs
Simultaneously, the broader cryptocurrency ETF sector continues to hit new milestones. Bitcoin ETFs registered net inflows of $3.38 billion during the week of November 18th–22nd, a substantial 102% increase from the preceding week’s $1.67 billion.
According to SoSo Value, this marked the highest weekly inflow on record and the seventh successive week of positive flows. However, on November 25th, total daily flows turned negative as $438.38 million exited the ETFs.
Interestingly, ETH ETFs experienced six straight days of outflows before bouncing back on November 22nd, with a daily net inflow of $2.83 million at the time of writing.
Moreover, total net assets for ETH ETFs exceeded ten billion dollars for the first time since inception, reaching $10.28 billion on November 25th.
Potential XRP ETF on the Horizon?
The excitement surrounding ETFs isn’t confined to BTC and ETH, as attention now shifts to other cryptocurrencies. Notably, WisdomTree, an asset management firm and global ETF provider overseeing over $100 billion in assets, has applied for an XRP-focused ETF in Delaware.
According to Fox Business reporter Eleanor Terrett, an S-1 filing with the SEC is expected to follow this move by WisdomTree, joining the likes of Bitwise, 21Shares, and Canary Capital in similar filings.
Gensler Stepping Down: A Boon for Crypto ETFs?
Amid evolving regulatory frameworks at the SEC, the flurry of crypto ETF submissions sparks curiosity about their prospects in this shifting landscape.
Former SEC Chair Gary Gensler, recognized for his stringent approach to crypto regulation, is set to resign effective January 20, 2025. This coincides with the beginning of Donald Trump’s second presidential term, who has vowed to position the U.S. as a leading global player in the crypto domain.
This shift may hint at a more receptive environment for crypto ETFs and digital asset advancements. The looming question remains: Will the SEC usher in this new era with open arms, or will the approval process persist as a significant hurdle?
The upcoming months are poised to be a pivotal phase in the evolution of the crypto market.