It is possible that an ETF will appear on the market that will be the first American fund with a diversified portfolio of spot cryptocurrencies. This is the Hashdex Nasdaq Crypto Index ETF.
Cryptocurrency ETFs
Bitcoin spot ETFs were launched at the beginning of the year. ETH funds only appeared on the market in July.
All 11 US BTC ETFs held more than 4% of the cryptocurrency’s total supply last week, with net inflows standing at $17.4 billion since launch.
The situation of ETH ETFs is worse for now because it is being disrupted by the Grayscale fund. It is a transformed trust, which now – after becoming an ETF – is losing its ethers. Investors are simply “pulling out” their capital, which was frozen in the trust for several months. However, the bleeding process is stopping.
Hashdex Nasdaq Crypto Index ETF – Multi-cryptocurrency ETF
In the background, U.S. regulators are reviewing an application for an ETF that is designed as an “all-in-one” cryptocurrency wallet and is set to list on the Nasdaq.
If approved, the Hashdex Nasdaq Crypto Index ETF will be the first diversified crypto ETF to hit the U.S. market. It will also be the first U.S. ETF to include altcoins.
In practice, the ETF is intended to track the Nasdaq Crypto US Index (NCIUS), which represents a diversified portfolio of cryptocurrencies including BTC, ETH, LINK, and UNI.
The only thing standing in the way of issuing ETF units is the Securities and Exchange Commission (SEC), which must approve the S-1 registration statement and allow at least one public stock exchange, such as Nasdaq, to list the product.
The Impact of ETFs on the Cryptocurrency Industry
It is hard to overestimate the influence of spot ETFs on the cryptocurrency market. They allow investors who cannot secure their bitcoins on their own to invest in digital assets indirectly, and thus safely allocate capital in this market. True, they only own an ETF unit, not bitcoin or ether, but they still have exposure to this market.
In addition, SEC approvals for the issuance of ETFs are a confirmation of the legal status – the recognition of BTC or ETH as commodities, not securities.
