Hashdex aims for first US spot Bitcoin approval with novel filing

TL;DR Breakdown

  • Hashdex is attempting to outpace giants like BlackRock with a unique spot bitcoin ETF strategy.
  • Instead of surveillance-sharing agreements, Hashdex’s ETF net asset value will be based on the CME market’s bitcoin futures curve.

Description

While industry giants like BlackRock and Ark have been scurrying to get the nod for their spot bitcoin ETFs, it’s Hashdex, a relatively lesser-known Brazilian asset manager, that has positioned itself to potentially outmaneuver them all. A Unique Strategy to Win SEC’s Trust Hashdex is angling for approval, aiming to alleviate the concerns of the … Read more

While industry giants like BlackRock and Ark have been scurrying to get the nod for their spot bitcoin ETFs, it’s Hashdex, a relatively lesser-known Brazilian asset manager, that has positioned itself to potentially outmaneuver them all.

A Unique Strategy to Win SEC’s Trust

Hashdex is angling for approval, aiming to alleviate the concerns of the US Securities and Exchange Commission (SEC) over the spot bitcoin market’s vulnerability to manipulation.

Instead of adopting the common approach like its competitors – setting up surveillance-sharing agreements with crypto exchanges – Hashdex offers an intriguing twist.

They intend to base their ETF’s net asset value on the bitcoin futures curve from the CME market. The allure of this tactic is that it’s anchored in a market the SEC respects, as it’s perceived to be at a lesser risk of manipulation.

Further consolidating its position, Hashdex has sought the New York Stock Exchange’s support to transform its existing NYSE Arca exchange-listed $3 million Bitcoin Futures ETF (DEFI) into a spot Bitcoin ETF.

This play seems well-timed, especially considering the circulating rumors that the SEC might be softening its long-standing stance against spot bitcoin ETFs.

The Competition and Its Limitations

The moment BlackRock, the behemoth of asset management, submitted its application for such an ETF, a modern-day gold rush ensued.

Esteemed managers including Ark Investment Management, WisdomTree, and VanEck scrambled to the SEC with their proposals, in hopes that BlackRock’s bold move would set a precedent.

Yet, the SEC remains tight-lipped, keeping everyone in suspense. Their core apprehension? Bitcoin’s trading takes place on unregulated exchanges that could be prone to deceit or manipulation.

If Hashdex’s gamble pays off, this could be a David vs. Goliath moment. Despite managing a meager $435 million, a pittance compared to BlackRock’s staggering $9.4 trillion, Hashdex might just pull the rug from under the industry giants.

The Hashdex ETF has another ace up its sleeve. Its blend comprises bitcoin futures contracts, spot bitcoin, and cash. Additionally, physical bitcoin transactions would be routed through the CME’s Exchange for Physical Transactions, further embedding it within regulated territory and scrutiny.

Consequently, manipulating this fund’s price would be an uphill battle.

1933 Securities Act – A Crucial Difference

Another notable facet is DEFI’s structure. Unlike many ETFs structured under the 1940 Investment Act, DEFI is orchestrated under the 1933 Securities Act. This distinction isn’t just legalese. The former permits investments only in securities, while the latter accommodates commodities.

Gary Gensler, the SEC chair, has been clear: bitcoin is a commodity. Should the SEC relax its grip on spot bitcoin ETFs, Hashdex’s 1933 Act alignment could present an unparalleled edge.

Furthermore, the inherent flexibility in DEFI’s structure might offer a fast track. As Cinthia Murphy, director of research at the ETF Think Tank, highlights, if the SEC green-lights a spot bitcoin, DEFI could feasibly make an overnight transition from futures to physical assets.

While the race to market first often bestows advantages, it’s not devoid of risks. Investors, cautious of being early adopters, might hold off, banking on imminent launches by renowned entities like BlackRock.

In a market that’s becoming increasingly crowded, Hashdex’s strategy offers a refreshing departure from the norm. Their gambit, daring and unorthodox, might just rewrite the rules of the game.

Only time will tell if this audacious move places them ahead of the curve or if they’ve bitten off more than they can chew.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:Hashdex aims for first US spot Bitcoin approval with novel filing

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年8月30日 12:43
Next 2023年8月30日 13:45

Related articles

  • Nansen under attack, 7% user data compromised – Here’s all you need to know

    TL;DR Breakdown Nansen, one of the most trusted crypto data providers, has suffered a security breach, one that could damage the crypto industry at great length.  An initial investigation revealed that 6.8% of the company’s user base had their email addresses compromised. Nansen is well-known for serving several Fortune 500 companies and other industry leaders. Description Nansen, the blockchain analytics platform widely trusted for its insights and data-driven solutions, has experienced a cybersecurity attack. The breach report sent shockwaves through the company’s user base.  The well-known crypto and blockchain analytics firm announced on the social networking platform X that one of its third-party vendors had a security compromise that affected 6.8% … Read more Nansen, the blockchain analytics platform widely trusted for its insights and data-driven solutions, has experienced a cybersecurity attack. The breach report sent shockwaves through the company’s user base.  The well-known crypto and blockchain analytics firm announced on the social networking platform X that one of its third-party vendors had a security compromise that affected 6.8% of its customers.  According to Nansen, the security breach provided hackers…

    Article 2023年9月23日
  • Binance FZE becomes the first exchange to receive an MVP license in Dubai

    TL;DR Breakdown Binance FZE is now the first exchange in the world to receive an Operational Minimum Viable Product(MVP) License in Dubai. Customers in the region can access a trustworthy and regulated service that emphasizes security and complies with very specific tier 1 VA rules. Binance has been actively pursuing regulatory compliance in the United Arab Emirates, following scrutiny in regions such as Cyprus, the Netherlands, and Austria. Description Binance FZE, Binance‘s Dubai subsidiary, has become the first exchange in the world to receive an Operational Minimum Viable Product (MVP) License in Dubai. The license comes from the emirate’s Virtual Asset Regulatory Authority (VARA).  Binance highlighted in the announcement that residents of the UAE and other consumers from around the world who sign up … Read more Binance FZE, Binance‘s Dubai subsidiary, has become the first exchange in the world to receive an Operational Minimum Viable Product (MVP) License in Dubai. The license comes from the emirate’s Virtual Asset Regulatory Authority (VARA).  Binance highlighted in the announcement that residents of the UAE and other consumers from around the world who…

    Article 2023年7月31日
  • Coinbase fills the void in the crypto lending space with new services 

    TL;DR Breakdown Coinbase has launched a crypto lending service aimed at U.S.-based institutional investors, already attracting over $57 million in investments through its Coinbase Prime service. The announcement coincides with an expansion of Coinbase’s bond buyback program to $180 million, signalling the company’s confidence despite a challenging market and regulatory landscape. Description Coinbase Global, the popular cryptocurrency exchange, is seizing a significant opportunity in the volatile crypto lending market. With several major players like BlockFi and Genesis Global exiting the market following financial distress, Coinbase has announced its entry into the lending space for institutional investors in the United States. Contents hide 1 A new service for … Read more Coinbase Global, the popular cryptocurrency exchange, is seizing a significant opportunity in the volatile crypto lending market. With several major players like BlockFi and Genesis Global exiting the market following financial distress, Coinbase has announced its entry into the lending space for institutional investors in the United States. Contents hide 1 A new service for institutional lending 2 Why previous lenders failed 3 Regulatory hurdles and bond buyback programs 4…

    Article 2023年9月6日
  • PayPal Appoints New CEO Amidst Stablecoin Expansion

    TL;DR Breakdown Alex Chriss, a former senior executive at Intuit, takes over as PayPal’s CEO, succeeding Dan Schulman. PayPal introduces the PYUSD stablecoin, exemplifying its commitment to pioneering change in the digital payments landscape. Description In a significant move that underscores the evolving landscape of the financial technology sector, American multinational payments giant, PayPal, has announced the appointment of Alex Chriss as its new CEO and President. This strategic decision comes as PayPal embarks on a new journey into stablecoin issuance, marking a pivotal moment in the company’s history. Contents … Read more In a significant move that underscores the evolving landscape of the financial technology sector, American multinational payments giant, PayPal, has announced the appointment of Alex Chriss as its new CEO and President. This strategic decision comes as PayPal embarks on a new journey into stablecoin issuance, marking a pivotal moment in the company’s history. Contents hide 1 A New Leadership Era: Alex Chriss Takes Charge 2 PayPal’s Vision for the Future: Beyond Traditional Online Payments 3 The Rise of PYUSD: A Game-Changer in Digital Payments 4 Conclusion…

    Article 2023年8月15日
  • Binance Labs invests $10 million in Helio Protocol

    TL;DR Breakdown Binance Labs has announced a $10 million investment into Helio Protocol. Helio protocol to make a strategic transition to liquidity staking. Description Binance Labs, the venture arm of cryptocurrency exchange Binance, has made a substantial investment of $10 million into Helio Protocol, a move aimed at supporting Helio’s transition into a liquid staking platform. While currently operating on the proof-of-stake network BNB Chain, this funding will enable Helio to extend its presence to other blockchain networks. The … Read more Binance Labs, the venture arm of cryptocurrency exchange Binance, has made a substantial investment of $10 million into Helio Protocol, a move aimed at supporting Helio’s transition into a liquid staking platform. While currently operating on the proof-of-stake network BNB Chain, this funding will enable Helio to extend its presence to other blockchain networks. The platform’s ambitions include launching on Ethereum, along with notable Layer 2 networks like Arbitrum and Zksync, as confirmed by a Binance Labs representative. Binance Labs funds Helio’s transition to liquid staking The shift towards becoming a player in the liquid staking sector marks…

    Article 2023年8月12日
TOP