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Crypto Asset Management Firm Hashdex Launches Bitcoin ETF on NYSE
On a recent Tuesday, Hashdex, a Brazil-based firm specializing in crypto asset management, made a significant announcement. The company revealed the launch of its Bitcoin Exchange-Traded Fund (ETF) on the prestigious New York Stock Exchange (NYSE). This development marks the addition of the eleventh Bitcoin ETF to go live since the Securities and Exchange Commission (SEC) gave its approval to a majority of fund applications back in January.
Prior to this current launch, Hashdex had initiated its entry into the market in September of 2022 with a Bitcoin Futures ETF traded on the New York Stock Exchange under the symbol DEFI. Now, the firm has converted this product into a spot Bitcoin ETF, providing investors with more immediate exposure to the leading cryptocurrency in the market.
What sets Hashdex apart from other spot Bitcoin ETFs is its decision to launch the product within the Chicago Mercantile Exchange (CME). Despite this unique approach, the new fund will still include Bitcoin futures in its investment strategy.
According to Hashdex, the fund aims to maximize its holdings of physical Bitcoin, with at least 95% of the fund’s assets invested in spot Bitcoin. The remaining 5% of the fund’s assets may be allocated to CME-traded Bitcoin futures contracts, as well as cash and cash equivalents.
It is worth noting the distinction between a Bitcoin Futures ETF and a spot Bitcoin ETF. While the former involves investments in futures contracts that offer indirect exposure to Bitcoin, the latter holds actual Bitcoin, providing investors with direct market price exposure.
The Bitcoin ETF launched by Hashdex reportedly holds approximately 5,500 Bitcoins, currently valued at around $377.2 million. The spot Bitcoin ETF is sponsored by Tidal ETF Services, while BitGo serves as the custodian of the Bitcoin assets that underpin the ETF.
Expressing his excitement about the launch, Hashdex co-founder and CEO Marcelo Sampaio stated, “We are thrilled to complete the conversion of DEFI and, with it, deliver an innovative product in coordination with Tidal that furthers our mission of empowering individuals and institutions around the world to access this revolutionary innovation.”
Furthermore, in January, the U.S. Securities and Exchange Commission gave the green light to ten spot Bitcoin ETFs from various investment firms, such as BlackRock, Bitwise, Grayscale, VanEck, Franklin Templeton, and ARK 21 Shares. Although Hashdex had also submitted a Bitcoin ETF application to the SEC, the regulatory agency was still in the process of reviewing the final registration statement when the applications from other firms were approved in January. This delay in approval affected the launch timeline for Hashdex.
A representative from Hashdex clarified the situation by stating, “DEFI originally received its 19b-4 approval first alongside other issuers, and this latest announcement is regarding the product going effective and converting from a futures to a spot Bitcoin ETF.” The spokesperson added, “To that end, its tracking of a new benchmark index became effective today, March 27, 2024.”
Conclusion
In conclusion, the launch of Hashdex’s Bitcoin ETF on the NYSE represents a significant milestone in the world of cryptocurrency investment. With the addition of this ETF to the market, investors now have another avenue to gain exposure to Bitcoin through a regulated and established platform. The innovative approach taken by Hashdex in converting its product from a Bitcoin Futures ETF to a spot Bitcoin ETF demonstrates the company’s commitment to providing investors with diverse and direct investment opportunities in the cryptocurrency space.
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