Hashdex is actively seeking approval for the introduction of a hybrid Ethereum ETF that combines spot and future contracts. The application for this ETF has been submitted by the Nasdaq stock exchange to the United States Securities and Exchange Commission (SEC).
The filing clearly outlines that, due to the nature of this application, the ETF’s share price may exhibit deviations from the spot price of Ether.
Hashdex’s Ethereum ETF, submitted for approval on September 11, has been named the Hashdex Nasdaq Ethereum ETF. It is designed to provide investors with exposure to both Ethereum spot and futures contracts. However, it acknowledges the possibility of price fluctuations, stating:
Since the primary goal of the Fund is to mirror the Benchmark’s price through investments in Ether and Ether Futures Contracts, fluctuations in the Share price may not perfectly align with changes in the spot price of Ether.
The management of this ETF will be overseen by Toroso Investments. Toroso has formulated an investment strategy aimed at mitigating manipulation risks through portfolio diversification. Furthermore, it addresses the ongoing concerns of the SEC regarding a spot Ethereum ETF:
“Rather than holding 100% spot Ether, which could render it more vulnerable to price manipulation in the spot market, the Fund will maintain a blend of Spot Ether, Ether Futures Contracts, and cash,” the filing affirms.
Additionally, the filing specifies that this diversified portfolio structure is subject to specific investment limits, including a cap on the amount of spot Ether that the fund can hold, thereby reducing the risk of manipulation.
In an interview with BeInCrypto, Samir Kerbage, Chief Investment Officer at Hashdex, expressed his belief that Brazil is taking a leading role in the realm of cryptocurrency ETFs.
Notably, in 2021, the Brazilian Securities Exchange Commission (CVM) granted approval for both a Bitcoin ETF and an Ethereum ETF, both of which are currently listed on B3, Brazil’s second-oldest stock exchange.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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