Ethereum
Hashdex Nasdaq withdraws Spot Ethereum ETF
Hashdex has officially withdrawn its proposal to Ethereum Spot ETF. The withdrawal came just a week after the U.S. Securities and Exchange Commission (SEC) green-lighted similar proposals from eight other issuers.
Hashdex withdraws Spot Ethereum ETF
Nasdaq filed the notice withdrawal for the Hashdex Nasdaq Ethereum ETF on Tuesday, which signaled a change in direction at the company. This decision follows the SEC’s approval of Forms 19b-4 for eight Ethereum ETF from traditional players like VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest & 21Shares, Invesco & Galaxy and BlackRock’s iShares Ethereum Trust.
The approved ETFs are expected to bring Ethereum investing to a new level of openness and turnover, which will likely impact the market.
Hashdex The initial SEC filing was made in September and it was planned to launch a fund that will invest in Ether, CME Ether futures and cash equivalents. Managed by Toroso Investments, a registered commodity pool operator, the ETF aimed to provide investors with a regulated pathway to gain exposure to Ethereum’s price movements.
Legislative comments and public response
The proposed ETF received a number of public comments before Forms 19b-4 was approved, including comments from legislators. Democratic senators have expressed their concerns and asked the SEC not to approve Ethereum spot ETFs. On the other hand, Republican Reps. French Hill of Arkansas, Tom Emmer of Minnesota and Josh Gottheimer of New Jersey requested approval in a letter.
However, while rejecting the Hashdex proposal, the SEC’s acceptance of the other eight Ethereum ETF shows a shift in its stance towards considering Ethereum as a commodity. However, their S-1 registration statements must be effective before these issuers can trade. The SEC has recently begun discussions with issuers regarding their S-1 forms, although the approval timeline has yet to be determined. Some analysts have estimated that these ETFs could take several weeks to get going.
Furthermore, the former chairman of the SEC Jay Clayton shed light on the approval situation regarding Ethereum ETFs and emphasized that listing approval is only the first step. The latter is relatively more comprehensive and includes the approval of fund registration statements, which contain information to be provided to potential investors.
Ethereum ETF Market Expectations
Bloomberg Analyst Eric Balchunas suggested that the market reaction to Ethereum ETFs would not be as enthusiastic as the reaction to Bitcoin ETFs. He initially predicted that Ethereum ETFs would only be able to trade one-tenth the volume of Bitcoin ETFs, but has since adjusted that number to one-fifth.
Balchunas said the initial capital required is between $1 billion and $2 billion in the first two weeks to be considered a success.
Another Bloomberg ETF analyst, James Seyffart, predicts that trading could begin as early as July or August, given the timely approval of S-1 documents. These documents are important because they provide a first overview of the organization and approach of the funds.
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