Hashdex, a crypto asset management company, has submitted its registration statement, S-1, to the U.S. Securities and Exchange Commission (SEC) for the Hashdex Nasdaq Crypto Index US ETF. This move is part of the firm’s plan to launch the first index-based crypto ETF in the U.S., tracking digital assets from the Nasdaq Crypto US Settlement Price Index.
Tracking Digital Assets
The S-1 filing reveals that if any crypto asset, other than Bitcoin and Ethereum, becomes eligible for inclusion in the Index, the ETF’s Sponsor will use a sample replication strategy. This approach will maintain Bitcoin and Ethereum in specific proportions within the Index. If Hashdex decides to switch back to a full replication strategy, they will need to file a rule change under Rule 19b-4 of the Exchange Act with the SEC to update its listing rules for new Index Constituents.
Bloomberg ETF Analyst James Seyffart mentioned on social media platform X that the fund could add other assets once it receives SEC approval. The S-1 filing was submitted roughly five weeks after Hashdex filed its 19b-4 form on June 18, which the SEC acknowledged in late June. If approved, the combined cryptocurrency ETF could soon be listed and traded.
ETF Weighting and Additional Assets
The ETF will be weighted based on the free float market caps of the listed crypto assets. Currently, the weights are 76.3% Bitcoin (BTC) and 23.7% Ethereum (ETH). Other cryptocurrencies like Litecoin (LTC), Chainlink (LINK), Uniswap (UNI), and Filecoin (FIL) are also in the Nasdaq Crypto US Settlement Price Index and could be included in Hashdex’s ETF in the future.
The S-1 filing also clarified that Ether staking will not be included in the ETF. BitGo and Coinbase Custody will act as custodians for Hashdex’s Bitcoin and Ethereum assets, which will be held in separate accounts for individual shareholders.
The filing comes shortly after eight asset managers launched their spot Ether ETFs on U.S. stock exchanges. On the first trading day, these ETFs saw a combined inflow of $590.7 million, surpassing industry analysts’ expectations. However, the following day experienced outflows, leading to a drop in ETH’s price by 10%, falling below $3,150 at one point.
