Brazilian Crypto Firm Files for Combined Spot, Futures Ether ETF

Brazilian Crypto Firm Files for Combined Spot, Futures Ether ETF

Hashdex’s filing comes as regulators face more pressure to approve crypto funds. 

LucyBrewster310x310
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Finance Reporter
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Reviewed by: Mark Nacinovich
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Edited by: Sean Allocca

Brazilian investment firm Hashdex is seeking to launch an ether ETF with the Nasdaq exchange that holds both futures contracts and spot ether.  

Nasdaq filed an application with the Securities and Exchange Commission to list the exchange-traded fund, which is called the Hashdex Nasdaq Ethereum ETF. The ETF will aim to invest in futures contracts listed on the Chicago Mercantile Exchange.  

By holding ether futures contracts and spot ether, the ETF “reduces its dependence on the spot market, thereby mitigating concern about potential manipulation in unregulated ether spot exchanges,” according to the filing. 

“As its investment thesis has evolved and improved, there has been more demand to access ETH in familiar, regulated investment products like ETFs,” Samir Kerbage, Hashdex’s chief investment officer, wrote in a recent blog post.  

Unique Structure for Spot Bitcoin, Futures Ether ETF 

The proposed ETF is also novel because it is the first fund to include ether futures structured under the 1933 Securities Act, as opposed to the 1940 Investment Act, which is what competing funds have filed under. While the 1940 Investment Act allows ETF to invest in securities, ETFs under the 1933 act can invest in commodities.  

The fund would be managed by Toroso Investments.  

The filing comes as a slew of firms jockey to gain first-mover advantage among cryptocurrency investors and convince the SEC that such funds are safe investment vehicles.  

Hashdex filed to convert its bitcoin futures ETF into a spot bitcoin fund in August. While the SEC allows ETFs that track bitcoin futures contracts, such as the ProShares Bitcoin Strategy ETF (BITO), the agency has thus far blocked over 30 applications for an ETF that tracks spot bitcoin.  

Asset managers including Bitwise Asset Management and Valkyrie Investments have also applied for ether futures ETFs amid reports that the SEC has warmed up the idea of considering an ether futures fund. For the funds to be approved, the agency would have to explicitly designate whether they consider ether a security or a commodity, according to etf.com analyst Sumit Roy.  

On Sept. 6, Ark Investment Management LLC, along with crypto exchange traded product firm 21Shares, filed for the first spot ether fund. 

Lucy Brewster is a finance reporter at etf.com covering asset managers, emerging technologies, and regulation. She hosts etf.com webinars and appears on Exchange Traded Fridays, etf.com’s flagship podcast. She previously was a finance fellow at Fortune Magazine where she covered markets, investment strategy, and venture capital. She has also been a freelancer writer at the publication Mergers & Acquisitions and a research fellow at the Historic Hudson Valley. 

She graduated from Vassar College in 2022 with a degree in History and was an editor of The Miscellany News, the college's award winning student run newspaper. 

Lucy lives in Brooklyn, NY, and in her free time she loves to run and find new recipes to cook.