Hashdex Withdraws Ethereum ETF Application
Hashdex, a Brazilian investment firm, has opted to retract its application for a spot Ethereum exchange-traded fund, according to a recent filing with the SEC.
The decision by the firm to enter the Ethereum ETF competition was initiated in November, with the Nasdaq exchange submitting the application to the SEC. The proposed ETF was designed to provide investors with exposure to both spot Ether and futures-based Ethereum contracts, presenting a unique structure among the many spot ETF proposals.
The filing emphasized that the incorporation of futures contracts into the ETF would decrease reliance on the spot market, thereby alleviating certain market manipulation risks.
The SEC postponed its decision on Hashdex's Ethereum proposal on March 19. During that period, it was widely anticipated that a spot Ethereum ETF would be rejected. Notably, esteemed ETF analyst James Seyffart predicted that only Hashdex's application might be approved if other spot applications were denied, owing to its distinctive structure.
Earlier this month, the regulator approved several spot Ethereum ETF applications, including one from BlackRock. However, Hashdex's 19b-4 form did not receive the green light from the SEC.
