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Hashdex Joins the Party: US Spot Bitcoin ETF Market Grows to 11

Last Updated March 28, 2024 12:22 PM
Teuta Franjkovic
Last Updated March 28, 2024 12:22 PM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • After SEC approval in January, Hashdex converted its Bitcoin Futures ETF into a spot one.
  • Compared to other approved ETFs, Hashdex started trading after a period of time.
  • It now trades on NYSE Arca under the ticker DEFI.
  • Hashdex aims to hold the majority of the ETF in physical Bitcoin.

Hashdex’s Bitcoin ETF has officially begun trading , meaning the United States n0w hosts 11 spot bitcoin exchange-traded funds.

This particular fund transitioned from the Hashdex Bitcoin Futures ETF and is now available on the NYSE Arca exchange.

Hashdex Joining Wave of Spot Bitcoin Offerings

This move follows the United States Securities and Exchange Commission’s (SEC) approval of 11 spot Bitcoin ETFs earlier in January, signaling a significant step towards mainstream acceptance and accessibility of cryptocurrency investments through traditional financial markets.

Hashdex Asset Management has, therefore, completed converting its Bitcoin futures exchange-traded fund into a spot Bitcoin ETF. The company announced Tuesday the renaming of Hashdex Bitcoin Futures ETF to Hashdex Bitcoin ETF (NYSE Arca: DEFI).

As per the official announcement :

“DEFI’s renaming corresponds to DEFI’s completion of the conversion of its investment strategy to allow the fund to provide spot bitcoin holdings and its tracking of a new benchmark index effective March 27, 2024.”

Hashdex Bitcoin ETF Delayed After SEC Approval

Hashdex’s fund, after being approved by the SEC on January 10 alongside 10 others, took a unique path to its launch. Unlike its peers, it didn’t start trading the following day. The approved ETFs represents a broad spectrum of financial institutions entering the cryptocurrency space, including major players such as Blackrock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), and Ark’s 21shares Bitcoin ETF (ARKB), among others.

Grayscale made a notable transition, converting its Bitcoin trust into a spot Bitcoin ETF. The Hashdex Bitcoin ETF distinguished itself by adopting the Nasdaq Bitcoin Reference Price-Settlement (NQBTCS) as its new benchmark index. Originally launched as a commodity pool under the Securities Act of 1933, the Hashdex Bitcoin Futures ETF made its debut on the NYSE in 2022, reflecting the growing interest and regulatory acceptance of digital asset investment products.

This wave of spot Bitcoin ETFs is a milestone in the integration of cryptocurrencies into mainstream financial markets, offering investors regulated and familiar mechanisms to gain exposure to Bitcoin.

Prioritizing Physical Bitcoin with Flexibility

Hashdex outlined  its future investment strategy under typical market conditions, stating its intent to primarily focus on direct holdings of physical Bitcoin. The firm aims to allocate at least 95% of the fund’s assets spot Bitcoin investments.

A smaller portion, up to 5%, may be directed towards investments in CME-traded Bitcoin futures contracts, alongside cash and cash equivalents, to diversify and manage the fund’s portfolio effectively.

Hashdex is the newly transitioned ETF’s digital asset advisor, while Tidal Investments  is its sponsor. Additionally, Tidal ETF Services is the fund’s administrator, while Bitgo is the Bitcoin custodian, as outlined by the company.

Marcelo Sampaio, the co-founder and CEO of Hashdex, expressed  his views on Bitcoin’s significance. He said that, since Hashdex’s inception in 2018, the company has firmly believed in Bitcoin’s potential.

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