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Hashdex Seeks SEC Approval for Hybrid Ethereum ETF
Hashdex is pursuing approval to present a hybrid blend of spot and future contracts Ethereum ETF, with an application submitted by the Nasdaq stock exchange to the United States Securities and Exchange Commission (SEC).
Because it is a unique application, there may be variances in the price of the shares compared to the spot price of Ether.
Hashdex Ethereum ETF Aims To Reduce Risks
According to the recent filing, Hashdex plans to introduce a hybrid Ethereum ETF, offering investors exposure to both spot and futures contracts. However, it notes that this endeavor could encounter price fluctuations:
“Because the Fund’s investment objective is to track the price of the Benchmark by investing in Ether and Ether Futures Contracts, changes in the price of the Shares may vary from changes in the spot price of Ether.”
The fund will be managed by Toroso Investments, which believes that the investment strategy aims to reduce manipulation risk by diversifying holdings and addresses the Commission’s concerns about an ETP holding spot Ether.
“Instead of holding 100% spot Ether, which could make it more susceptible to price manipulation in the spot market, the Fund will hold a mix of Spot Ether, Ether Futures Contracts, and cash,” the filing states.
This is a developing story and more information will be added as it becomes available.
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