Originally published on: October 01, 2024
Asset manager Hashdex is making moves in the cryptocurrency world with its amended registration filing for a proposed exchange-traded fund (ETF). This ETF is designed to offer investors a comprehensive cryptocurrency portfolio. The filing, submitted on Oct. 1, indicates progress in the approval process with the United States Securities and Exchange Commission.
The Hashdex Nasdaq Crypto Index US ETF will initially include Bitcoin (BTC) and Ether (ETH), which are currently the only assets in the Nasdaq Crypto US Index. However, there is potential to expand the ETF to include additional digital currencies in the future.
Industry experts believe that crypto index ETFs are the next big thing after the successful listing of ETFs holding BTC and ETH earlier in the year. Katalin Tischhauser, head of investment research at crypto bank Sygnum, sees index ETFs as the next logical step for investors looking for efficient exposure to the crypto market.
Another player in the crypto index ETF space is asset manager Franklin Templeton, which is also seeking approval for a similar ETF. The Franklin Crypto Index ETF will track the performance of the CF Institutional Digital Asset Index, which currently includes BTC and ETH.
Tischhauser notes that current crypto index ETFs are limited to BTC and ETH due to regulatory constraints. However, as demand grows and more assets are approved by the SEC, these ETFs may expand to include a wider range of cryptocurrencies.
Total assets in US ETFs recently surpassed $10 trillion, with cryptocurrency ETFs contributing significantly to this growth. In 2024, crypto ETFs accounted for a significant portion of ETF inflows, highlighting the growing interest in digital assets among investors.
With the crypto market continuing to evolve and gain mainstream acceptance, index ETFs like the Hashdex Nasdaq Crypto Index US ETF are poised to provide investors with a diversified and efficient way to access the burgeoning cryptocurrency space. Stay tuned for more updates on this exciting development in the world of crypto ETFs.
