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The September 11 filing of Hashdex Nasdaq, Ethereum ETF has been put forth to the SEC for approval. - 2
With this approval, Investors’ exposure to both Ethereum spot and future contracts will be offered.
Hashdex is seeking approval to present the combination of spot and future contract Ethereum ETF. It has submitted the application by the Nasdaq Stock Exchange to the United States Securities and Exchange Commission (SEC). According to the September 11 filing, the investors will be facilitated with both Ethereum spot and future contracts. But, this could lead to price fluctuations.
The fund investment aim is to track the price of the benchmark by investing in Ether and Ethereum future contracts. Changes in the price may vary from changes in the price of Ether.
Filing States Investment Limits
The filings also state that the wide range of portfolios has some investment limits. The rules include the capping of the amount of spot Ether that the fund can hold to lessen the risk of manipulation.
The fund will be managed by Torso Investment. Torso has faith that the investment strategy aims to reduce manipulation risk by diversifying the holdings. It also declares the SEC’s ongoing concern about spot Ethereum ETF.
Besides holding 100% spot Ether which will make it more prone to price manipulation in the spot market, the fund will hold a blend of spot Ether, Ether future contracts, and cash filing states.
Samir Kerbage, Chief Investment Officer at Hasshdex, indicated his faith by saying that Brazil is leading the way in the world of crypto ETFs. In 2021, the Brazilian Securities and Exchange Commission approved both Bitcoin ETF and Ethereum ETF. Both of them are listed on Brazil’s second oldest stock exchange B3.
He also states that other countries should also consider Brazil’s approach to the ETF. And, they believe that the Brazil model will help the U.S. and other countries in making their crypto regulatory framework.
Kerbage mentions that he believes the Brazilian government recognized crypto early interest and prioritized regulatory framework for investor protection. The country has the most developed crypto market which consists of many index strategies.
The SEC is nearing approval for the first Ethereum Future. It shows potential authorization in just a few weeks. A report of August 18, shows that by October many firms will get approval to launch Ether and Future ETF.
The regulator will most certainly not block the product which would be based on the second largest cryptocurrency. Though many firms have submitted applications, it remains unclear which firm will get the approval first.
Summary
Hashdex is looking for consent from the Security and Exchange Commission to make available the combination of spot and future contract Ethereum. The investors will be facilitated with both. This can cause price fluctuations.
Source: https://www.thecoinrepublic.com/2023/10/02/hashdex-nasdaq-seeks-approval-from-sec-for-ethereum-etf/