Hashdex Submits Updated S-1 for Nasdaq Crypto Index US ETF

Hashdex, an asset management firm, has filed an amended registration for a proposed exchange-traded fund (ETF) aimed at creating a comprehensive cryptocurrency portfolio, according to a regulatory submission dated October 1.

This filing represents ongoing efforts toward securing approval from the United States Securities and Exchange Commission (SEC) for the crypto index ETF after the agency requested additional time to evaluate the fund’s trading authorization in August.

Details of the Proposed ETF

The Hashdex Nasdaq Crypto Index US ETF will initially focus on Bitcoin (BTC) and Ether (ETH), which are currently the only assets represented in the Nasdaq Crypto US Index. The prospectus hints at the potential inclusion of more digital currencies in the future.

Industry Perspectives

Market analysts believe that crypto index ETFs will become the next major offering for issuers, following the successful launches of Bitcoin and Ether ETFs earlier this year.

• Katalin Tischhauser, head of investment research at Sygnum, stated, “The next logical step is index ETFs, similar to how an S&P 500 ETF functions for traditional investors.”
• Franklin Templeton is also pursuing a comparable crypto index ETF, as indicated by a filing dated August 16.

Regulatory Considerations

The Franklin Crypto Index ETF aims to track the CF Institutional Digital Asset Index, which, like the Nasdaq Crypto US Index, currently focuses solely on BTC and ETH. Tischhauser emphasizes that the SEC’s current approval limits index ETFs to these two assets.

According to her, “As long as the SEC continues to authorize only Bitcoin and Ethereum, those will be the sole components of such indexes.” She also noted the lower demand for single-asset ETFs for other cryptocurrencies like Solana (SOL).

Market Trends and Growth

As of September 27, total assets held in US ETFs have surpassed $10 trillion, fueled by over $20 billion in inflows into cryptocurrency ETFs throughout 2024, according to analyses from Bloomberg Intelligence and Morningstar.

Crypto-focused ETFs accounted for 13 of the 25 largest ETF launches this year, based on inflow metrics reported through August, illustrating a robust interest in this investment sector.