The cryptocurrency management company, Hashdex has officially submitted a request to the US. SEC seeking approval for a Bitcoin futures ETF. This ETF would possess direct ownership of physical spot Bitcoin.
ETFs are financial instruments traded on stock markets. They derive their valuation from a variety of underlying assets, including stocks, bonds, and commodities. Similarly, Bitcoin ETFs track the performance of BTC. They are traded on traditional stock exchanges, distinguishing them from cryptocurrency platforms.
Hashdex’s Unique Strategy for Spot Bitcoin ETF Gains Attention and Support
Hashdex is taking a unique approach, distinct from recent competitors. Instead of depending on the Coinbase surveillance sharing agreement, Hashdex’s strategy involves acquiring spot Bitcoin. This acquisition is done directly from physical exchanges operating within the CME market.
The NYSE Arca, in its formal submission to the SEC (Form 19b-4), detailed Hashdex’s plan to incorporate spot Bitcoin into its Bitcoin futures ETF. This move would also involve renaming it as the Hashdex Spot Bitcoin ETF.
Experts are closely examining Hashdex’s innovative Spot Bitcoin ETF proposal. James Seyffart, Bloomberg, emphasized that the core of this strategy revolves around exclusive engagement in exchange-based position transactions. This refined method involves replacing futures contracts with an equal stake in spot Bitcoin, moving away from the conventional direct cash purchases from exchanges.
Market Analysis and Expert Insights on Hashdex’s Bitcoin ETF Strategy
Seyffart suggests that due to the ongoing Grayscale lawsuit, the Ethereum futures proposal, and BlackRock’s incorporation of the Coinbase surveillance sharing agreement, Gary Gensler, the SEC’s head, might experience increased pressure. This situation could potentially incline the SEC to regard Hashdex’s strategy more favorably.
Nate Geraci, Alistair Milne, and Scott Johnsson, all experts, have also commented on Hashdex’s distinctive Bitcoin ETF concept. They see it as a possible way to tackle specific concerns of the SEC regarding market manipulation and liquidity in the realm of Bitcoin.
Currently, both the SEC and its Chair, Gary Gensler, have chosen not to comment on the applications for a Bitcoin ETF and the rise of Ethereum ETFs. Additionally, there has been no indication of whether a spot Bitcoin ETF might receive approval during the current year.
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