April 19, 2024
Hashdex Expects Bitcoin ETF Trading in Q2, Ethereum to Follow
Bitcoin News

Hashdex Expects Bitcoin ETF Trading in Q2, Ethereum to Follow

Hashdex, among the 13 asset managers contending for a position in the Bitcoin exchange-traded fund (ETF) market, anticipates the debut of the first spot Bitcoin ETF in the United States by the second quarter of 2024, followed by a spot Ether ETF.

Hashdex’s U.S. and Europe head of product, Dramane Meite, expressed in a 2024 outlook report released on Dec. 4, “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.'” Meite further stated,

“We believe U.S. investors will have access to a spot Bitcoin ETF by the second quarter of the new year and that a spot Ether ETF is likely to follow.”

Hashdex is one of the 13 asset managers that have submitted a spot Bitcoin ETF application to the U.S. Securities and Exchange Commission (SEC). Additionally, it has proposed a hybrid Ether ETF incorporating futures and spot contracts to the regulator.

While Bloomberg ETF analysts James Seyffart and Eric Balchunas have placed 90% odds on the approval of spot Bitcoin ETFs leading up to Jan. 10, 2024, Seyffart has clarified that this pertains to the 19b-4 applications, and approval of the separate Form S-1 is also necessary for an ETF to launch.

Seyffart pointed out in November that there could be weeks or even months between approval and launch. Companies utilize Form S-1 to inform the SEC of proposed rule changes, requiring approval from the agency’s Division of Corporation Finance.

Meite, in Hashdex’s report, foresees that spot Bitcoin and Ether ETFs will prompt “legacy asset managers with thousands of staff and trusted brands” to offer their customers a crypto product for the first time.

He believes this development will unlock a $50 trillion market, surpassing the combined size of Europe, Canada, and Brazil—the only three global markets currently featuring spot crypto exchange-traded products. Meite anticipates that most interest in single-asset ETFs will be concentrated on Bitcoin and Ether due to their name recognition and little differentiation among incumbents.

Image by Freepik

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