Hashdex Withdraws Application for Spot Ether ETF, SEC Filings Show
According to documents filed with the U.S. Securities and Exchange Commission (SEC) on May 24, Hashdex has officially withdrawn its application for the Hashdex Nasdaq Ethereum ETF.
The filing, submitted on May 28, has left investors and industry observers speculating about the reasons behind this unexpected move, especially given the SEC’s recent approval of eight similar financial products.
The Hashdex Nasdaq Ethereum (ETH) exchange-traded fund (ETF) aimed to combine spot Ether holdings with Ether futures contracts, a strategy designed to mitigate market manipulation risks. This approach is intended to track daily fluctuations in the Nasdaq Ether Reference Price, addressing regulatory concerns about price manipulation in the spot market.
The abrupt halt of Hashdex’s intentions to proceed with a single-asset Ether ETF has raised questions. While the precise reasons for the strategic withdrawal remain undisclosed, evolving regulatory conditions and internal strategic considerations within Hashdex might have played a role.
The timing of Hashdex’s withdrawal, just a day after the SEC approved Ether ETFs from major players like VanEck, BlackRock, and Fidelity, highlights the market’s competitive pressures and regulatory challenges. These approved spot-based Ether ETFs are set to launch on various exchanges in June, offering new investment opportunities in the Ethereum ecosystem.
Hashdex’s decision not to proceed with its Ether ETF represents a significant departure from its previous success with spot Bitcoin ETFs, which the SEC approved in January. Hashdex’s Bitcoin ETF utilized a distinct strategy by sourcing spot BTC from physical exchanges within the CME market, avoiding reliance on the Coinbase surveillance
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