Today marked a second major success for crypto enthusiasts and investors, with the launch of a crypto-focused ETF.
- A large crypto company successfully launched its first exchange traded fund (ETF) today.
- “Hashdex, an innovative leader in crypto asset management, today announced the launch of the Hashdex Bitcoin Futures ETF, the world’s first Bitcoin Futures ETF,” says a Hashdex press release.
- The company was founded in 2018 to provide greater crypto access to investors and now it has successfully moved into the area of ETFs.
- Hashdex Bitcoin Futures ETF (DEFI) was developed in partnership with Nasdaq, the Nasdaq Crypto Index, Victory Capital Management Inc, and Teucrium Trading, LLC.
Why it’s news
The DEFI launch was a major win for crypto enthusiasts who have struggled to launch a crypto ETF on the stock exchange.
“Holdouts for a physically-backed U.S. bitcoin exchange-traded fund saw a glimmer of hope on Thursday with the launch of a new futures-backed product,” says Bloomberg.
Securities and Exchange Commission Chair Gary Gensler has denied several crypto ETF filings, including a recent June filing from Grayscale Investments.
Hashdex appears to have had better luck by changing its approach, filing under the Securities Act of 1933 instead of the Investment Company Act of 1940.
“That detail matters to industry watchers because the 1940 law has been the preferred format for Securities and Exchange Commission Chair Gary Gensler, who has cited its greater investor protections. Since a physically-backed Bitcoin ETF, which the SEC has repeatedly denied, would fall under the 1933 act, DEFI’s launch could potentially be a stepping stone to approval,” says Bloomberg.
The funds are dropping into the market at a vulnerable moment for Crypto, following major Bitcoin dips earlier this year that caused the coin to dip. It’s currently lost 69.8% of its value since it’s peak $65,466.84 per bitcoin exchange rate on November 8, 2021.
“DEFI launches at a volatile time in the crypto universe. Bitcoin has plunged over 57% in 2022, weighed down by sky-high inflation and an aggressive Federal Reserve,” says Bloomberg.