In contrast to prior filings, Hashdex will not rely on the Coinbase surveillance sharing arrangement and instead will buy Bitcoin on spot markets using CME market physical exchanges.
Exchange-traded funds (ETFs) are a kind of mutual fund that are traded on a stock exchange and receive their value from a diversified portfolio of assets. Bitcoin exchange-traded funds (ETFs) follow BTC’s price and trade on stock markets instead of cryptocurrency exchanges.
In contrast to prior filings, Hashdex will not rely on the Coinbase surveillance sharing arrangement and instead will buy Bitcoin on spot markets using CME market physical exchanges.
There have been reactions from Bitcoin specialists to Hashdex’s novel ETF application. According to Bloomberg analyst James Seyffart, the approach consists only of exchanging linked holdings for one another. As an alternative to buying currency directly from exchanges, this strategy involves exchanging futures contracts for spot exposure.
Seyffart believes there is a greater chance of SEC approval since Gary Gensler is under duress from the Grayscale case, the filing of Ethereum futures, and the integration of the Coinbase surveillance sharing agreement by BlackRock.
Hashdex’s novel Bitcoin ETF proposal received reactions from a wide range of experts, including the head of The ETF Store, investor Alistair Milne, and finance attorney Scott Johnsson. They think it has the potential to ease some of the SEC’s concerns about speculation and liquidity in the Bitcoin market.
There has been no word from the SEC or its chair, Gary Gensler, on the applications for spot Bitcoin ETFs, the flood of Ethereum ETFs, or the possibility that a spot Bitcoin ETF would be approved this year.
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