Latin American digital asset manager Hashdex has applied for approval of a spot Bitcoin ETF, joining a crowded field of applicants.
The proposal would allow Hashdex to hold spot Bitcoin directly within its existing futures ETF trust. It contrasts with other filings relying on surveillance-sharing with exchanges.
The filing comes as the SEC repeatedly stonewalls spot Bitcoin ETFs while futures products operate. It sustains interest amid extended regulatory ambiguity on physically-backed crypto funds.
Hashdex is positioning its plan as distinguishing itself through tighter integration of CME's regulated market. But the SEC's outlook remains uncertain.
Seeking Physical Backing
According to James Seyffart from Bloomberg, in its SEC application, Hashdex proposes using CME's existing Bitcoin futures market to obtain and sell actual BTC for its ETF.
The regulated exchange-traded futures could serve as a conduit for spot exposure instead of direct OTC purchases.
This aims to address regulators' concerns around exposure to unregulated crypto spot markets. But the SEC has yet to approve any physical Bitcoin ETF applications.
"This strategy is in contrast to the approach others have taken, using a surveillance-sharing agreement with Coinbase," noted Hashdex.
It cited the lack of evidence that such agreements resolve the SEC's worries. Hashdex is promoting its CME-centric plan as more reassuring to cautious regulators.
Hashdex's filing follows Grayscale Investments again facing disappointment in its spot Bitcoin ETF quest.
A court decision on its Bitcoin Trust converting to an ETF was postponed to an undetermined date, sustaining uncertainty.
Other applicants like ARK Invest also await decisions or feedback as the SEC sticks to its opaque process.
"The lingering ambiguity persists regarding the future of the Bitcoin spot ETF," said Grayscale lawyer Craig Salm.
But Hashdex adds another contender to the expanding field of applicants. Its CME strategy offers a unique approach, but the SEC's views remain firmly shrouded.