Bloomberg, Hashdex expect SEC’s imminent approval of Bitcoin ETFs

Hashdex, an asset manager among the 13 contenders for launching a spot Bitcoin exchange-traded fund (ETF) in the United States, anticipates the debut of the first spot Bitcoin ETF by the second quarter of 2024, with a spot Ether ETF expected to follow.

This forecast was shared by Dramane Meite, Hashdex’s head of product for the U.S. and Europe, in the company’s 2024 outlook report released on December 4.

According to Meite, the conversation surrounding a spot Bitcoin ETF in the U.S. has shifted in 2023, moving from uncertainty about its feasibility to discussions about its eventual launch. Hashdex’s application for a spot Bitcoin ETF is currently under review by the U.S. Securities and Exchange Commission (SEC). Additionally, the company has proposed a hybrid Ether ETF, which would include both futures and spot contracts.

Bloomberg ETF analysts James Seyffart and Eric Balchunas have assessed a high likelihood of 90% that spot Bitcoin ETFs will receive approval around January 10, 2024. However, Seyffart clarified that this probability relates specifically to the 19b-4 applications. For an ETF to be launched, a separate Form S-1 also needs to be approved.

Earlier in November, the SEC opted to extend the decision-making timeline for the proposed Hashdex Nasdaq Ethereum ETF, which aims to include both spot ether and futures contracts. The agncy cited the need for additional time to thoroughly assess the proposed rule change and related concerns.

The decision on whether to approve, disapprove, or initiate proceedings will now be made by January 1, 2024. Additionally, the SEC also postponed a decision on converting an application for a Hashdex bitcoin futures ETF. The Hashdex Nasdaq Ethereum ETF was initially filed by the Nasdaq stock exchange in September and is managed by Toroso Investments​​.

Hashdex, a Brazil-based crypto asset manager, rolled out a physically-backed exchange-traded product (ETP) that tracks the performance of avalanche, bitcoin, cardano, ether, litecoin, polkadot, polygon and solana. The ETP is listed on Switzerland’s SIX Swiss Exchange in Zurich, and provides simple exposure to Nasdaq’s Crypto Index Europe (NCIE). The offering is 100% physically backed by actual crypto assets and the staked coins will be stored in a secure custodian.

Hashdex is said to have more than 250,000 institutional and private investors that use its products globally, as well as close to $1 billion in assets under management. The crypto asset manager has over 90 team members from both the tech and financial worlds across Rio de Janeiro, New York, and Zurich.