Hashdex Anticipates the Arrival of Bitcoin ETFs for Trading by Q2, with Ethereum to Follow Suit

Hashdex, among the 13 asset managers competing for a spot in the Bitcoin exchange-traded fund arena, foresees the inaugural spot Bitcoin ETF arriving in the United States by the second quarter of 2024. A spot Ethereum ETF is expected to follow suit.

We did an article on Hashdex’s submission for their blended Bitcoin ETF back in August here. 

We did an article on Hashdex’s submission for their own blended Ether ETF back in September here. 

It was just in late October that Hashdex conducted a meeting with the United States Securities and Exchange Commission (SEC) to address the regulator’s concerns regarding its application to permit the Hashdex Bitcoin Futures exchange-traded fund (ETF) to include spot Bitcoin. 

In a recent turn of events, in a recent outlook report published on the 4th of December, Hashdex expressed the exact timing of the approval for a spot Bitcoin ETF still remains unclear, but predicts their offerings to begin by Q2, 2024. 

Not only did the report state this, but within the report, the leaders and digital asset specialists at Hashdex explore future projections by delineating pivotal themes that are set to shape cryptocurrency investments in 2024 and the foreseeable future.

‘Over the past year, digital assets have rebounded from an environment of distrust and fear to once again being recognised as the most promising opportunity for long-term investors,” said Marcelo Sampaio, Co-Founder and CEO of Hashdex.

‘The recent crypto winter was a period of building and preparing investors to be able to capitalise as the current bull market takes shape. Looking ahead to 2024, interest in crypto’s investment case is undeniable as the asset class continues to be one of the strongest performers, and we are thrilled to share our outlook for what we believe will be a monumental year for the industry.’

‘Those of us that have long been proponents of crypto have become accustomed to a roller coaster ride of highs and lows, but as we emerge from the latest downturn, our unwavering belief that crypto will change the world for the better is stronger than ever,’ stated Samir Kerbage, Chief Investment Officer at Hashdex.

In terms of the ETFs, Hashdex’s Dramane Meite, US & Europe Head of Products, stated: ‘the exact timing of a spot Bitcoin ETF in the U.S. remains unclear, but in 2023, the narrative around this product switched from a question of ‘if’ to a matter of ‘when.’’

This is great confidence heading into the January deadline. 

Bloomberg ETF analysts James Seyffart and Eric Balchunas have set a 90% probability for the approval of spot Bitcoin ETFs just before Jan. 10, 2024. Seyffart cautioned that this estimation pertains solely to the 19b-4 applications, emphasising the necessity of approval for a separate form, the “S-1,” for an ETF to be initiated.

Companies utilise the S-1 form to notify the SEC about proposed rule adjustments, necessitating approval from the agency’s Division of Corporation Finance.

According to Hashdex’s report, Meite expressed that spot Bitcoin and Ether ETFs would witness established asset managers with extensive staff and reputable brands introducing a cryptocurrency product to their clientele for the first time.

He anticipated that this move would unlock a market valued at $50 trillion, surpassing the combined size of Europe, Canada, and Brazil, currently the only three global markets offering spot cryptocurrency exchange-traded products.

Meite foresaw the majority of interest in single-asset ETFs gravitating towards Bitcoin and Ether, citing their widespread recognition and minimal differentiation among existing options.