Nasdaq files Hashdex Mixed Ether ETF with SEC

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Last Updated on September 13, 2023 by Bitfinsider

The Nasdaq stock market has submitted an application with the Securities and market Commission to launch an Ethereum ETF from Brazilian asset manager Hashdex, which intends to hold both spot ether and futures contracts.

The Hashdex Nasdaq Ethereum ETF is managed and administered by Toroso Investments, which is a commodities pool operator registered with the commodities Futures Trading Commission and a member of the National Futures Association.

The latest wave of applications has focused on whether a prospective crypto ETF intends to hold futures contracts or spot funds, with the SEC having accepted the former but not the latter. Fund managers appear to be pushing their luck with a middle-of-the-road strategy.

The Hashdex fund’s investment goal is for its shares to reflect daily changes in the price of the Nasdaq Ether Reference Price, and it intends to invest in ether, CME-listed ether futures contracts, cash, and cash equivalents. “Instead of holding 100% spot Ether, which could make it more susceptible to price manipulation in the spot market, the Fund will hold a mix of Spot Ether, Ether Futures Contracts, and cash,” Nasdaq stated in the 19b-4 form. “By holding Ether Futures Contracts and cash in addition to Spot Ether, the Fund reduces its reliance on the spot market, mitigating concerns about potential manipulation in unregulated Ether spot exchanges,” the statement stated. “Instead, the Fund will rely on Ether Futures Contracts and Ether Futures EFPs traded on the CME Market, a regulated exchange that provides greater transparency and oversight than unregulated spot exchanges.”

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