TL;DR
- Hashdex withdraws its application for an Ethereum ETF just as the SEC approves ETH-based financial products.
- Hashdex’s proposal featured a unique approach, combining physical Ether with futures contracts.
- VanEck, BlackRock, and Fidelity have received SEC approval and now await the effectiveness of their S-1 registration statements.
Hashdex, a major investment manager, has made the decision to withdraw its application for a spot Ethereum exchange-traded fund (ETF). This has caught the attention of the community as the decision was made just as the SEC has started approving ETH-based financial products.
The withdrawal of Hashdex’s application, submitted to the SEC on May 28, came just a day after the commission gave the green light to eight similar financial products. However, the investment manager has not provided a specific reason for this decision, leaving speculations about the reasons behind the decision and whether they plan to resubmit the proposal in the future.
On the other hand, financial firms VanEck, BlackRock, and Fidelity have received SEC approval for their own spot Ether ETFs. This will allow these companies to list and trade ETFs tracking the price of ETH in the spot market, expanding investors’ access to the crypto market.
Hashdex Backtracks
It is worth noting that Hashdex’s proposal featured a unique approach, combining physical Ether with futures contracts. This model aimed to address concerns about market manipulation by closely following the movements of ETH price from Nasdaq. However, the withdrawal of the application suggests that the manager has chosen not to proceed with this particular approach.
Nasdaq’s proposal for the ETF, managed by Toroso Investments, has also received mixed reactions from lawmakers. Some have expressed support for the approval of these funds, while others have expressed concerns.
Despite the SEC’s approval, issuers still need to wait for their S-1 registration statements to become effective before they can start trading. While the SEC has begun discussions with issuers about these filings, it is still unclear how long this process will take.
