Hashdex Forecasts Spot Bitcoin ETF Trading by Q2 2024
In a 2024 outlook report released on December 4, Dramane Meite, the Europe head of product at Hashdex, expressed optimism regarding the availability of a spot Bitcoin ETF for U.S. investors by the second quarter of the upcoming year. Meite also indicated that a spot Ether ETF is likely to follow suit. Hashdex is among the 13 asset managers currently awaiting approval from the U.S. Securities and Exchange Commission (SEC) for its spot Bitcoin ETF application.
This projection comes amid a shifting narrative around the inevitability of a spot Bitcoin ETF in the U.S., with industry experts now framing the discussion as a matter of “when” rather than “if.” Hashdex’s U.S. and Europe head of product, Dramane Meite, shared this insight in the company’s 2024 outlook report published on December 4. The expectation is that a spot Ether ETF may follow suit after the launch of the Bitcoin ETF.
Additionally, the company has proposed a hybrid Ether ETF, incorporating both futures and spot contracts, to the regulatory body. While Bloomberg ETF analysts James Seyffart and Eric Balchunas have assigned a 90% probability to the approval of spot Bitcoin ETFs around January 10, 2024, Seyffart has emphasized that this estimation specifically pertains to the 19b-4 applications, with the separate Form S-1 approval being essential for the actual launch of the ETF.
In November, Seyffart highlighted the potential for a considerable gap, spanning weeks or even months, between the approval of proposed rule changes communicated through Form S-1 and the actual launch. The Form S-1 serves as the means for companies to formally inform the SEC about their intended regulatory modifications, necessitating approval from the SEC’s Division of Corporation Finance for these changes to proceed.
Established in 2018, Hashdex stands as a trailblazer in global crypto asset management, dedicated to forging pathways to prosperity by democratizing access to the crypto ecosystem on a global scale. With a solid foundation of trust, the company currently manages over $430 million in client assets, as of July 26, 2023. Hashdex’s commitment is evident in providing simple and secure products, empowering forward-thinking investors to participate in the dynamic and burgeoning crypto economy.
Hashdex’s report, as articulated by Dramane Meite, envisions the advent of spot Bitcoin and Ether ETFs as a significant milestone, bringing established legacy asset managers into the realm of cryptocurrency offerings. Meite anticipates that this development will unlock a massive $50 trillion market, surpassing the combined market sizes of Europe, Canada, and Brazil – currently the only three global markets with spot crypto exchange-traded products. The report underscores the transformative potential of these ETFs, positioning Bitcoin and Ether as primary focal points due to their widespread recognition and the perceived lack of differentiation among existing players. As the industry awaits regulatory approvals, the entrance of major asset managers into the crypto space is poised to reshape the landscape and extend crypto investment opportunities to a broader investor base.