SEC Approves First Spot Bitcoin-Ethereum ETF

As reported, the SEC has received the 19b-4 filing for the Hashdex Nasdaq Crypto Index U.S. ETF. If this is approved by early March 2025, the ETF will include both Bitcoin and Ethereum in its portfolio.

The “19b-4” term relates to a rule under the Securities Exchange Act of 1934 that details the review and approval process for specific types of ETFs. Essentially, it outlines the formal procedures and requirements for ETF applications, ensuring adherence to regulatory standards and aiding the SEC’s evaluation process.

Hashdex previously attempted to launch a spot Ethereum ETF but withdrew its proposal due to a highly competitive market. The firm is now pivoting to a combined Bitcoin-Ethereum strategy, distributing 70.54% to BTC and 29.46% to ETH. To safeguard these assets, Hashdex intends to collaborate with a reputable custody provider.

This strategic shift by Hashdex is in response to the current market conditions, where an oversupply of Ethereum-focused products has prompted a broader investment approach in the cryptocurrency space. Public sentiment regarding the ETF will play a crucial role in the SEC’s ultimate decision, which could result in additional delays despite an initially favorable outlook.

Investors should closely monitor these developments, as they represent a significant opportunity to connect traditional financial markets with the cryptocurrency industry.

As the SEC’s evaluation process commences, industry experts expect increased attention and scrutiny as the anticipated approval date approaches.