Hashdex Applies for SEC Permission to Launch Hashdex BTC ETF

Hashdex, a Brazilian asset management firm, has requested permission from the United States Securities and Exchange Commission (SEC) to establish a Bitcoin spot exchange-traded fund (ETF).

The company has decided to hold the Bitcoin spot and has renamed its previous ETF application, which had a DEFI ticker.

The application is now known as the Hashdex Bitcoin ETF. The DEFI application was submitted in the guise of a futures ETF.

Hashdex, on the other hand, will not utilize the Coinbase SSA, a custodial arrangement that permits ETFs to store their BTC with the Coinbase custodial Trust company.

In contrast to other Bitcoin futures ETFs that utilize the Coinbase SSA, these do not.

Hashdex will instead utilize the exchange for physical (EFP), which is provided by CME Group, the world’s largest futures exchange.

EFP enables investors to exchange futures contracts with similar spot risks without requiring them to purchase or sell Bitcoin directly from exchanges.

This new technique may give Hashdex an advantage over other companies that have applied to list BTC in an exchange-traded fund.

It may alleviate some of the SEC’s concerns regarding the liquidity and manipulation of the spot BTC market.

By utilizing EFP, Hashdex can avoid interacting with unregulated or unreliable exchanges and instead rely on the infrastructure and governance provided by CME Group.