NASDAQ stock exchange has submitted an application with the Securities and Exchange Commission to list a new Ethereum ETF. The application was initiated by Brazilian asset management firm Hashdex. The application is aiming for both spot and futures-backed ETF for Ethereum. The product in question is titled Hashdex NASDAQ Ethereum ETF.
The fund will be managed by Toroso Investments. It is a commodity pool management firm that is also registered with Commodity and Futures Trading Commission. At the same time, the firm is also member of National Futures Association.
At present, SEC is processing a barrage of spot and futures ETP applications for major cryptocurrencies such as Bitcoin and ETH. However, the regulatory agency has proceeded to approve the later but it yet to greenlit a spot trading contract.
Nevertheless, fund managers are now sticking with a neutral position in order to make the best out of the rough road ahead. Hashdex fund investment share are set to reflect daily changes in ETH reference price for NASDAQ.
The agency has been researching ETH in order to make an investment in the blockchain byproduct. At the same time, the firm is investing in other ETH product such as ETH futures contracts listed on CME.
NASDAQ has declared in its 19b-4 form that the investment firm is not planning on holding 100% stakes in ETH spot positions only. The firm has decided to diversify its portfolio with a mix of ETH futures contract, cash, and spot ETH ETFs in the fund.
The firm has retained that holding ETH alone can expose it to price volatility and probable manipulation. At the same time, the firm has also retained that it will include cash and futures contracts for Ethereum in addition to direct investment in the token.
In this manner, the investment enterprise intends to lower market manipulation risks for unregulated spot exchanges.
The firm is set on dividing its portfolio in futures contracts and futures EFPs for ETH that is listed on the CME market. CME is a regulated crypto exchange that offers better transparency and regulatory oversight for spot exchanges.
In this manner, Hashdex retained that it is going to reduce its dependence on spot market. At the beginning of the year, Marcelo Sampaio claimed that his enterprise works in tandem with the regulators rather than suing them. He also claimed that a spot Bitcoin ETF is inevitable but the time is unknown.
Following BlackRock’s foray some of the major financial firms such as VanEck, 21Shares, and ArkInvest have accelerated their pace to list the first ever spot Bitcoin ETF in USA.
Franklin Tempelton Becomes the Latest Firm to File for Bitcoin Spot ETF
Franklin Tempelton has become the latest financial behemoth to join the race for Bitcoin spot ETF. The firm recently filed for an application with the Securities and Exchange Commission through CBOE.
The development has added weight to the probability of approval of the first ever Bitcoin spot ETF in the country with stakes getting higher. Franklin Tempelton is based in San Mateo and it is known for structured investment vehicles such as mutual funds and ETPs.
The firm has in the past, dealt with novel fund by mixing them with tokenized Treasury bond and blockchain technology. At present, many analysts have expedited their expectations for the approval of a Bitcoin spot ETF in USA.
However, it is likely that some of the earliest proponents in this matter such as BlackRock, Fidelity, and WisdomTree are likely to obtain the first approvals.