Asset management firm Hashdex has taken another step toward launching its cryptocurrency-focused exchange-traded fund (ETF) in the U.S. The company filed a second amended S-1 application with the Securities and Exchange Commission (SEC) on November 25, reinforcing its bid for regulatory approval of the Nasdaq Crypto Index US ETF.
Key Features of the Proposed ETF
The ETF aims to offer investors diversified exposure to cryptocurrencies, initially including Bitcoin (BTC) and Ethereum (ETH)—the only assets currently tracked by the Nasdaq Crypto US Index. The filing indicates potential expansions to other digital assets in the future.
👉 Explore how crypto ETFs are reshaping investment portfolios
Regulatory Context and Challenges
Hashdex’s amended filing follows an SEC request for additional review time in October. The SEC maintains a cautious stance on crypto-related products, reflecting broader regulatory scrutiny. Despite this, demand for crypto index ETFs continues growing, with firms like Franklin Templeton and Grayscale pursuing similar approvals.
Why Crypto Index ETFs Matter
Crypto index ETFs function like traditional index funds (e.g., S&P 500 ETFs), providing diversified market exposure.
"Index ETFs streamline investing—just as the S&P 500 does in traditional markets. Crypto is no different," noted Katalin Tischhauser, Sygnum’s Head of Investment Research.
Competitive Landscape
- Franklin Crypto Index ETF: Tracks the CF Institutional Digital Asset Index (BTC/ETH-focused).
- Grayscale Digital Large Cap Fund: Holds BTC, ETH, Solana (SOL), and XRP; seeks ETF conversion.
Regulatory Outlook and Market Impact
A potential shift in SEC leadership by January 2025—coinciding with Gary Gensler’s planned departure—could influence crypto ETF approvals. Pro-crypto policies under a new administration may accelerate approvals for altcoin-inclusive products.
👉 Stay updated on crypto ETF developments
Analyst Insights
Bloomberg ETF analyst James Seyffart suggests altcoin inclusion (e.g., XRP, Solana) hinges on SEC compliance assessments:
"If Bitcoin and Ethereum dominate the portfolio weight, regulatory concerns may diminish."
FAQ Section
1. What cryptocurrencies will the Hashdex ETF include initially?
The fund will start with Bitcoin (BTC) and Ethereum (ETH), mirroring the Nasdaq Crypto US Index.
2. How does this ETF differ from others?
It tracks a Nasdaq-managed index, offering structured exposure compared to single-asset ETFs like Bitcoin-only funds.
3. When might the SEC approve this ETF?
Timing depends on regulatory reviews and potential leadership changes at the SEC in 2025.
4. Can the ETF add other cryptocurrencies later?
Yes—the filing allows for future inclusions based on index updates and regulatory compliance.
5. How do crypto index ETFs benefit investors?
They provide diversification, lower volatility, and simplified access to the crypto market.
Final Notes
Hashdex’s persistence underscores the growing institutional interest in regulated crypto products. As the SEC’s approach evolves, this ETF could become a benchmark for crypto index investing.
Disclaimer: Cryptocurrency investments carry risks. Conduct independent research before making financial decisions.
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