Hashdex Revises Filing for Nasdaq Crypto Index US ETF, Marking Progress Toward Launch

Hashdex, a prominent asset management firm, has filed a second amended application for its proposed Nasdaq Crypto Index US ETF, signaling continued progress toward offering a diversified cryptocurrency index fund on U.S. exchanges. The updated filing, submitted on November 25, represents a key step in the process of securing approval from the U.S. Securities and Exchange Commission (SEC).

This marks the latest development in Hashdex's efforts to launch the crypto index ETF, which initially aims to include Bitcoin (BTC) and Ether (ETH) — the two primary digital assets currently represented in the Nasdaq Crypto US Index. However, the fund has the potential to expand to encompass additional cryptocurrencies in the future, as outlined in the amended filing.

Hashdex's first amended S-1 was submitted in October after the SEC requested more time to review the application and make a decision on whether the ETF will be authorized for trading. This delay underscores the regulatory scrutiny that cryptocurrency-related financial products continue to face, though industry analysts view this as a positive sign that progress is being made.

The emergence of crypto index ETFs is considered a major next step in the evolution of the cryptocurrency market. According to Katalin Tischhauser, Head of Investment Research at crypto bank Sygnum, index ETFs offer an efficient investment vehicle for crypto, similar to how traditional investors use ETFs to gain exposure to indices like the S&P 500. “The next logical step is index ETFs,” Tischhauser told Cointelegraph. “Just as people buy the S&P 500 ETF, this will be the same for crypto."

The SEC's stance on crypto regulation has softened following the November 5 U.S. election, with Donald Trump's victory signaling potential changes to the regulatory landscape. Trump has previously promised to transform the U.S. into the “world’s crypto capital,” and his win has led to speculation that the SEC’s approach to crypto oversight may become more favorable. Notably, on November 21, SEC Chair Gary Gensler announced he would step down in January 2025, the same day Trump is scheduled to begin his second presidential term. Gensler has been a prominent figure in the SEC’s strict approach to cryptocurrency regulation.

Hashdex is not the only asset manager pursuing crypto index ETFs. Both Franklin Templeton and Grayscale are also working on similar products. Franklin Templeton's proposed Franklin Crypto Index ETF would track the CF Institutional Digital Asset Index, which, like the Nasdaq Crypto US Index, currently includes only Bitcoin and Ether. Grayscale's Digital Large Cap Fund, established in 2018 but not yet exchange-traded, holds a broader crypto index portfolio, including assets like Bitcoin, Ether, Solana (SOL), and XRP (XRP), among others.

Grayscale’s approach distinguishes its fund from other proposed crypto index ETFs by incorporating a range of alternative cryptocurrencies, making it a unique player in the index ETF space.

As the crypto market continues to mature and regulatory clarity increases, index-based ETFs like the Nasdaq Crypto Index US ETF may offer investors a more diversified and accessible way to gain exposure to the cryptocurrency market. The outcome of Hashdex's filing, along with similar proposals from Franklin Templeton and Grayscale, could pave the way for broader adoption of crypto index ETFs in the U.S. market.