Hashdex, a digital asset management company, filed with the US Securities and Exchange Commission (SEC) to create an exchange-traded fund (ETF) combined with bitcoin (BTC) and ether (ETH), the native cryptocurrency of Ethereum .  

In form 19-b4, the firm specialized in the creation of investment products based on cryptocurrencies details that the ETF will be made up of 70.54% BTC and 29.46% ETH, as seen in the document: 

The form Hashdex submitted details the composition percentages of the ETF. Source: Hashdex form.

This ETF is based on a passive investment strategy that seeks to replicate the performance of the Nasdaq Cryptocurrency Settlement Price Index in the United States. Unlike actively managed funds, which try to outperform the index, this ETF does not aim to do so. 

In this context, James Seyffart, senior analyst at Bloomberg Intelligence, provided more details of the form that Hashdex presented and noted that the regulatory body has 90 days to respond to the 19-b4 request. Furthermore, he indicated: 

“The final deadline for SEC approval should be around the first week of March 2025.”  

James Seyffart, Bloomberg analyst. 

The ETF will use cryptocurrency trading platforms Coinbase and BitGo to ensure custody of its holdings of the digital assets.  

Coinbase is the main custodian of the BTC that backs the ETFs of this spot digital currency.  

For Seyffart, a mixed-asset ETF “makes a lot of sense” for investors looking for diversified exposure, noting that the fund will not invest in other spot assets besides BTC and ETH.  

Hashdex has experience in these types of ETFs

The Brazil-based company already has a spot exchange-traded fund made up of bitcoin, ether and seven other cryptocurrencies.  

In March 2021, the Brazilian Securities and Exchange Commission (CVM) authorized the launch of this ETF.  

The denomination of the instrument is HASH11 and it is composed of bitcoin (65.77%), ether (25.41%), Solana (4.70%), XRP (1.50%), Cardano (0.89%), Chairlink (0.41%), Litecoin (0.33%), Polygon (0.32%), Avalanche (0.30%), Uniswap (0.24%), and Polkadot (0.15%).  

Composition of the Hashdex ETF. Source: Hashdex.

Hashdex's presentation comes days after knowing whether, finally, the SEC approves the S-1 forms presented by the issuing companies of the ETH exchange-traded funds. When these documents have the green light, they will be able to go on the market.