Hashdex Launches Spot Bitcoin ETF on NYSE, Expanding the ETF Landscape

Hashdex has commenced trading its Bitcoin ETF on the New York Stock Exchange, joining the wave of similar products approved by the SEC since January. Unlike other spot Bitcoin ETFs, Hashdex's ETF is launched within the Chicago Mercantile Exchange and will incorporate Bitcoin futures, allowing for a blend of direct and indirect Bitcoin exposure.

Hashdex Launches Spot Bitcoin ETF on NYSE, Adds to Growing ETF Landscape

New York, March 27, 2024 - Hashdex, a Brazil-based crypto asset management firm, has announced the launch of its spot Bitcoin exchange-traded fund (ETF) on the New York Stock Exchange (NYSE), bringing the total number of live Bitcoin ETFs to 11 since the Securities and Exchange Commission (SEC) approved the bulk of fund applications in January.

Initially launched in September 2022 as a Bitcoin Futures ETF under the ticker symbol 'DEFI,' Hashdex has converted its product to a spot Bitcoin ETF, offering investors direct market price exposure to the leading cryptocurrency.

Unique Approach within Spot ETF Landscape

Unlike other spot Bitcoin ETFs, Hashdex has structured its product within the Chicago Mercantile Exchange (CME) and will continue to incorporate Bitcoin futures. This combination aims to provide investors with a balance of direct Bitcoin exposure and exposure to futures contracts.

"Under normal market conditions, our investment policy prioritizes maximizing our holdings in physical Bitcoin, with the expectation that at least 95% of the fund's assets will be invested in spot Bitcoin," Hashdex stated in a press release. "Up to 5% of the remaining assets may be allocated to CME-traded Bitcoin futures contracts, cash, and cash equivalents."

Key Details and Custodianship

Hashdex's Bitcoin ETF currently holds 5,500 Bitcoins, with an estimated value of $377.2 million. The ETF is sponsored by Tidal ETF Services, which serves as the fund's administrator. BitGo acts as the custodian responsible for safeguarding the Bitcoin underpinning the ETF.

Positive Reception from Hashdex

"We are excited to complete this conversion and provide an innovative product that aligns with our mission of empowering individuals and institutions globally to access this groundbreaking innovation," said Hashdex's co-founder and CEO, Marcelo Sampaio.

Prior SEC Approval Delays

In January, the SEC approved ten spot Bitcoin ETFs from notable investment firms such as BlackRock, Bitwise, Grayscale, VanEck, Franklin Templeton, and ARK 21 Shares. While Hashdex had also filed an ETF application with the SEC, its registration statement was still under review when the other applications were approved, leading to a delay in the company's launch plans.

Effective Date and Regulatory Compliance

"DEFI initially received its 19b-4 approval alongside other issuers, and this recent announcement signals the product's effectiveness and transition from a futures to a spot Bitcoin ETF," a Hashdex spokesperson clarified. "The fund's tracking of a new benchmark index became effective today, March 27, 2024."

Market Landscape

The launch of Hashdex's Bitcoin ETF further diversifies the growing ETF landscape in the crypto asset class, providing investors with various investment options and exposure to the digital currency market. As the regulatory environment continues to evolve, the industry anticipates further innovation and adoption of ETFs in the future.