Nasdaq Joins Forces with Hashdex to Introduce a Pioneering Ethereum ETF

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In a recent groundbreaking move, Nasdaq, a globally acclaimed stock exchange, has formally approached the Securities and Exchange Commission (SEC) with a proposal. It involves launching an Ethereum ETF. Their partner in this endeavor? None other than Brazilian asset management powerhouse Hashdex.

Inside the Hashdex Nasdaq Ethereum ETF

Toroso Investments, an established entity affiliated with the Commodity Futures Trading Commission and the National Futures Association, is at the helm of the Hashdex Nasdaq Ethereum ETF. This ETF is not just another passive investment. It uniquely combines both spot ether and futures contracts in its holding.

The focus of this Ethereum ETF isn’t just the traditional assets. By electing to hold futures contracts and spot funds, the ETF deliberately nods towards the SEC’s past decisions—embracing approved futures while steering clear of controversial spot products.

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The fund’s strategy is to mirror daily Nasdaq Ether Reference Price oscillations. But how does it achieve this? Through a diversified mix of investments in ETH, CME-listed Ether futures contracts, and of course, liquid assets like cash.

Addressing Market Manipulation Concerns

A prominent feature of this investment strategy is the diversification. By spreading its holdings across Spot Ether, Ether Futures Contracts, and cash, the ETF aims to minimize its dependence on the volatile spot market. The objective? To circumvent the manipulation risks prevalent in non-regulated Ether spot exchanges. Consequently, the spotlight will be on Ether Futures Contracts traded on the stringently supervised CME Market—a move championing transparency and stringent oversight.

Earlier in the year, Marcelo Sampaio, the brains behind Hashdex, shared some insight into his company’s ethos. Unlike their counterparts at Grayscale Investments, who recently triumphed over the SEC in a contentious lawsuit, Hashdex believes in collaboration over confrontation. Despite the uncertainties surrounding the approval of a spot Bitcoin ETF, Sampaio remains bullish about its future prospects.

The Race for the First US Ethereum ETF

Ark Invest and 21Shares aren’t far behind in this race. Just last week, they jointly applied to the SEC. Their goal? To unveil the ARK 21Shares Ethereum ETF, positioned to be the inaugural US ETF anchored by Ethereum, Bitcoin’s closest rival in the cryptocurrency realm.

The race to seal the deal on the first US spot Bitcoin ETF is heating up. Even with a history of setbacks rooted in concerns about fraudulent activities and price manipulation, the horizon looks promising. Especially with Grayscale Investments’ recent court victory, industry experts are optimistic about future endorsements of such financial instruments.

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