Hashdex Develops a New Approach for Offering Bitcoin ETF on the CME 

With the ongoing spot Bitcoin exchange-traded fund (ETF) discourse, the leading asset manager in Sao Paulo, Hashdex, has made an exciting move to end the US Securities and Exchange (SEC) delays in approving the pending applications. On Thursday, October 26, the Hashdex team held a closed-door meeting with the SEC to deliberate on its Bitcoin Futures exchange-traded fund (ETF) offering. 

A source privy to the information revealed that the discussion revolved around the Hashdex application to offer spot Bitcoin ETF. The report indicated that the meeting was attended by six SEC officials, NYSE Arca, K&L Gates, Tidal Financial Group, and Hashdex top executives. 

Hashdex Seeks for Approval of Spot Bitcoin ETF

During the meeting, the Hashdex official gave a presentation on the strategy the asset manager intends to use in offering the spot Bitcoin ETF. For the past few months, the SEC has been reluctant to approve the spot Bitcoin ETFs due to a lack of regulatory clarity for digital assets. 

The delays and the multiple rejection of the Bitcoin ETF offering by the SEC has forced Hashdex to devise new ways to introduce a new financial product.

The Hashdex official offered a detailed explanation of the strategy the asset manager plans to adopt to offer the spot Bitcoin ETF on the Chicago Mercantile Exchange (CME), currently governed by the Commodity Futures Trading Commission (CFTC). 

A review of the October 26 presentation demonstrated that Hashdex spot Bitcoin ETF offering will differ from the dozen applications. The Hashdex team revealed that its new financial product does not require a surveillance-sharing agreement.

Hashdex Devise a New Mechanism for Offering Bitcoin ETF

Reportedly, the SEC has been delaying approving most of the applications for failing to meet the regulatory requirements. A revisit of the revised application demonstrated that the SEC had rejected the applications from Fidelity, Valkyrie, and BlackRock after the asset managers failed to provide a surveillance partner. 

Unlike the other ten applicants, Hashdex plans to offer physical Bitcoin ETF from exchanges listed in the CME markets. The official confirmed that the Hashdex Bitcoin ETF offering will rely on the CME pricing.

One exciting feature of the Hashdex Bitcoin ETF offering will be the use of the CME instead of the spot exchange. The crypto community welcomed the uniqueness of the Hashdex approach.

SEC to Approve Bitcoin ETF Application

A statement from the renowned Bloomberg ETF analyst James Seyfart described the Hashdex approach as undeniable for the SEC. The analyst argued that even if the SEC reject the dozen of the Bitcoin ETF applications, the regulators might consider approving the Hashdex application.

Seyfart remained optimistic that there was no chance that the SEC would reject the Hashdex application. The analyst noted that the Hashdex proposed approach conforms with the SEC Teucrium Order. This provision considers the Bitcoin Futures Market listed on the CME as sufficient to support new financial products seeking to gain Bitcoin exposure.

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