Nasdaq files Hashdex’s Ethereum ETF application with SEC

Nasdaq filed with the SEC for a new exchange-traded product that would combine both spot and futures ETH contracts.

Nasdaq has filed an application with the US Securities and Exchange Commission (SEC) to list an exchange-traded fund by Hashdex that will track the price performance of Ethereum (ETH) using the Nasdaq Ethereum
Reference Price, as per a regulatory filing.

According to the 19b-4 form, the Hashdex Nasdaq Ethereum ETF from Brazilian asset management firm Hashdex would be managed and controlled by Toroso Investments, an investment advisory firm based in New York. The document describes that “under normal market conditions,” the ETF will invest in ETH, Ethereum Futures Contracts listed on the Chicago Mercantile Exchange (CME), in cash and cash equivalents.

The ETF will combine spot ETH, ETH futures contracts, and cash so that the fund’s portfolio “can be dynamically adjusted based on market conditions and regulatory developments,” the document says.

“This flexibility allows the Fund to respond quickly to any signs of potential manipulation or other market abuses, further enhancing its resilience against manipulation.”

Nasdaq

The SEC will have 240 days to decide if the Ethereum (ETH) ETF will be approved or denied.

This is the second regulatory filing for an Ether ETF in September 2023. Earlier, the Chicago Board Options Exchange (CBOE) also filed two applications seeking the SEC’s approval for the ARK 21Shares Ethereum ETF and VanEck.

What is an ETF?

Exchange-traded funds (ETFs) have recently become a simplified and convenient investment option for many assets, including cryptocurrencies. ETFs allow investors to gain exposure to the performance of an asset or a combination of assets without actually owning them.

Crypto ETFs track the price of a cryptocurrency, allowing investors to invest indirectly in digital currencies without the need to purchase and manage the assets themselves. This eliminates the need for customers to open an exchange account or deal with cryptocurrency wallets, saving them time and effort.