SEC progresses on Hashdex Crypto ETF amid regulatory shifts and institutional interest
SEC progresses on Hashdex Crypto ETF amid regulatory shifts and institutional interest
Asset manager Hashdex has submitted a second amended application for its proposed Nasdaq Crypto Index US ETF, signaling steady progress in bringing a diversified cryptocurrency portfolio to U.S. exchanges. The filing, submitted on November 25, underscores a growing trend among asset managers toward crypto index ETFs as the next major step for institutional investors.
The proposed ETF will initially include Bitcoin (BTC) and Ether (ETH), the only assets currently in the Nasdaq Crypto US Index, with potential expansion to other digital currencies. Crypto index ETFs are seen as a logical progression following the launch of Bitcoin and Ether ETFs earlier this year. “Indices are efficient for investors — just like how people buy the S&P 500 in an ETF. This will be the same in crypto,” said Katalin Tischhauser, head of investment research at Sygnum.
Regulatory landscape and industry competition
The filing comes amid a shifting regulatory environment following Donald Trump’s election victory. Trump has vowed to make the U.S. a global hub for cryptocurrency, a stance reflected in the upcoming departure of SEC Chair Gary Gensler, known for his strict oversight of the crypto industry. Gensler’s exit on January 20, 2025, coincides with Trump’s inauguration.
Hashdex’s push for an index ETF joins efforts by Franklin Templeton and Grayscale, both of which are seeking approval for similar products. Franklin Templeton’s ETF will track the CF Institutional Digital Asset Index, while Grayscale’s Digital Large Cap Fund, which includes Solana (SOL) and XRP, offers broader diversification but is not yet exchange-traded.
The approval of crypto index ETFs could represent a pivotal moment for the market, enabling investors to diversify across multiple cryptocurrencies with a single investment vehicle. As the SEC reevaluates its approach under new leadership, the race among asset managers to pioneer these products is intensifying.
The success of these funds could signal a new phase of maturity for the cryptocurrency market, attracting broader institutional participation and reshaping how investors engage with digital assets.
Another ETF may be on the horizon as WisdomTree joins the contenders for an XRP ETF amid the ongoing SEC lawsuit.
