The race for approval of Bitcoin Exchange Traded Funds (ETF) continues to persist as Hashdex, a renowned crypto asset manager, propels its unique strategy for a spot Bitcoin ETF. The firm has filed an application before the US Securities and Exchange Commission to float a Bitcoin futures ETF, which would significantly hold forms of actual spot Bitcoin.
A remarkable divergence from previous filings, Hashdex’s approach is independent of the Coinbase surveillance sharing agreement. Instead, it has chosen to amass spot Bitcoin within the CME market from physical exchanges.
Bitcoin ETFs, much like their traditional counterparts, trade on the stock exchange with their value linked to their underlying asset—in this case, Bitcoin. Several experts predict the arrival of Bitcoin ETFs on traditional stock exchanges will yield wider digital asset adoption due to increased accessibility.
Agreeing with this proposition, James Seyffart, an analyst at Bloomberg, anticipates a heightened probability of the SEC approving Hashdex’s filing, citing ongoing pressure on Gary Gensler caused by the Grayscale lawsuit and Ethereum futures admission, coupled with BlackRock incorporating the Coinbase surveillance sharing agreement.
On the flipside, others including Nate Geraci, President of The ETF Store, investor Alistair Milne, and finance attorney Scott Johnsson, maintain Hashdex’s unique Bitcoin ETF filing might ease some of SEC’s concerns regarding Bitcoin market manipulation and liquidity.
While ringing endorsements of Hashdex’s strategy are aplenty, it is important to note that the SEC, alongside Gensler, hasn’t yet issued a statement regarding spot Bitcoin ETF applications or potential approvals for spot Bitcoin ETFs within this year. This adequately summarizes the ongoing dichotomy in market sentiment—while some exude optimism others adopt a cautious stance, reflecting the uncertainty and unpredictability characteristic of the crypto sphere.
This filing isn’t just another application in line but could potentially serve as a memento or landmark shift in how ETFs are perceived and approved. The industry will keenly watch as this application passes through the various regulatory hoops, and if approved, could set a precedent in the market.