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Crypto asset management firm Hashdex announced on Tuesday that it has launched a Bitcoin ETF on the New York Stock Exchange. This marks the 11th Bitcoin ETF to go live since the SEC approved most of the fund’s applications in January.
Hashdex entry was originally launched in September 2022 as a Bitcoin futures ETF trading as DEFI on the New York Stock Exchange. The Brazil-based company said it has converted its product into a Spot Bitcoin ETF to provide investors with more immediate exposure to the number one cryptocurrency.
However, unlike other spot Bitcoin ETFs, HashDex launched its product within the Chicago Mercantile Exchange (CME). And the new fund will continue to include Bitcoin futures.
“Going forward, under normal market conditions, the Fund’s investment policy is expected to maximize its holdings in spot Bitcoin, with at least 95% of the Fund’s assets invested in spot Bitcoin,” Hashdex said. Ta. “Up to 5% of the Fund’s remaining assets may be invested in CME-traded Bitcoin futures contracts and cash and cash equivalents.”
Bitcoin futures ETFs refer to investments in futures contracts that provide indirect Bitcoin exposure, while spot Bitcoin ETFs hold actual Bitcoins and provide direct market price exposure.
According to Hashdex, the Bitcoin ETF currently holds 5,500 Bitcoins worth approximately $377.2 million.
According to Hashdex, the Spot Bitcoin ETF is sponsored by Tidal ETF Services, which acts as the fund’s custodian along with BitGo, which acts as the custodian of the ETF’s underlying Bitcoin.
Marcelo Sampaio, co-founder and CEO of Hashdex, said: “We are very pleased to complete the DEFI migration and thereby collaborate with Tidal to deliver an innovative product. “It furthers our mission to make this game-changing innovation accessible to individuals and institutions across the globe.” said in a statement.
In January, the U.S. Securities and Exchange Commission approved a 10-stock Bitcoin Spot ETF from investment firms including BlackRock, Bitwise, Grayscale, VanEck, Franklin Templeton, and ARK 21Shares.
Hashdex has filed a Bitcoin ETF application with the SEC, but the company’s launch plans have been delayed as regulators were still reviewing the final registration statement at a time when other companies’ applications were approved in January. Ta.
“DEFI was originally the first to receive 19b-4 approval alongside other issuers, and this latest announcement concerns the product becoming effective and converting from futures to a spot Bitcoin ETF.” said a Hashdex spokesperson. Decryption. “To that end, effective today, March 27, 2024, we have enabled tracking of a new benchmark index.”
Edited by Ryan Ozawa.
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