21shares has filed a registration statement for a solana exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). The ETF will trade on the Cboe BZX Exchange and will utilize Coinbase Custody Trust Company for secure custody of SOL. Vaneck also recently filed a registration statement with the SEC to launch a solana […]
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T-Rex Group Files for Leveraged ETFs Targeting Microstrategy’s Bitcoin-Heavy Portfolio
T-Rex Group has filed for exchange-traded funds (ETFs) that aim to leverage the daily performance of Microstrategy Incorporated (MSTR). The proposed ETFs will take 2x long and 2x inverse positions in MSTR, magnifying its daily stock performance by 200%. T-Rex Group Files for Microstrategy ETFs, Dubbed the ‘Ghost Pepper of ETF Hot Sauce’ T-Rex Group, […]
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3iq Files to Launch Solana Exchange-Traded Product in Canada
3iq Digital Asset Management has announced that its solana fund has filed a preliminary prospectus for an initial public offering in Canada. The fund aims to become the first solana (SOL) exchange-traded product (ETP) in North America. Its objectives include providing exposure to the cryptocurrency, long-term capital appreciation, and staking yield. The Fund Seeks to […]
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Hashdex Files For First-Ever Combined Ethereum And Bitcoin ETF
In a significant development within the cryptocurrency industry, asset manager Hashdex recently submitted an application to the US Securities and Exchange Commission (SEC) for a combined spot Ethereum and Bitcoin ETF.
Ethereum And Bitcoin ETF Merge?
Bloomberg ETF expert James Seyffart noted that Hashdex’s proposed ETF would be market cap-weighted and could potentially accommodate additional digital assets as they gain approval from the SEC.
Hashdex already operates a successful crypto index ETF in Brazil, known as HASH11, which primarily consists of Bitcoin and Ethereum, making it a logical step to introduce a similar offering to the US market, according to Seyffart.
Notably, the filing with the SEC states that Hashdex plans to use the services of at least two custodians, Coinbase and BitGo, to ensure the safe storage of the underlying assets.
While spot Ethereum ETFs in the US are yet to receive full approval from the SEC, Bloomberg analyst Eric Balchunas has suggested an estimated launch date of July 2nd based on minor feedback received by issuers.
This development indicates that the SEC’s review process for spot Ethereum ETFs is nearing completion, setting the stage for potential market expansion and increased investment opportunities.
Hashdex’s decision to launch a joint Ethereum and Bitcoin ETF aligns with their belief that as cryptocurrencies gain mainstream acceptance, new assets will emerge to disrupt the market share of Bitcoin and Ethereum.
Crypto Indices
In a recent blog post analyzing the current state of the market, the asset manager explained that by offering a diverse basket of crypto assets through an index-based approach, Hashdex aims to provide investors with exposure to the growth potential of these alternative digital assets.
The asset manager’s success in Brazil, where crypto index ETFs have surpassed single-asset products, underscores the benefits of diversification and regulated ETF structures.
Hashdex anticipates this trend to expand to Europe and eventually the US, as “evolving regulations” and growing demand from professional investors and wealth managers favor diversified exposure.
Hashdex believes that crypto indices offer several advantages for investors, including risk mitigation, transparency, standardization, and a time-tested methodology. The Hashdex blog post further reads:
The crypto market remains a complex landscape prone to volatility, and this will not change any time soon. Identifying individual winners and losers has always been a challenge in traditional markets, and becomes even more so with an emerging asset class like crypto. However, crypto indices offer a standardized approach to capturing overall market performance, serving as a guidepost in the ever-evolving digital asset landscape.
Ultimately, Hashdex’s filing for a joint Ethereum and Bitcoin ETF signifies a pivotal moment in expanding the accessibility of crypto investments. With the potential approval of spot Ethereum ETFs and the increasing adoption of diversified crypto index strategies, the stage is set for a brighter future for investors seeking exposure to the digital asset space.
As of this writing, the largest cryptocurrency on the market, Bitcoin, continues its downward trend, falling 3.3% in 24 hours, resulting in a current trading price of ,600.
Featured image from DALL-E, chart from TradingView.com
Sam Bankman-Fried Files Notice of Appeal, Challenges Conviction and Sentence
Former FTX CEO Sam Bankman-Fried formally lodged an appeal against both his conviction and sentence with the District Court for the Southern District of New York (SDNY) on Thursday. Bankman-Fried’s legal representatives had anticipated this move, having previously requested that he remain at New York’s Metropolitan Detention Center (MDC) to facilitate the appeals process. From […]
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Bitwise Files for Spot Ethereum ETF With SEC, Highlights Detailed Correlation Analysis
Bitwise Asset Management has filed with the U.S. Securities and Exchange Commission (SEC) for a spot ethereum exchange-traded fund (ETF), a move aimed at providing investors with regulated exposure to ether without direct ownership of the cryptocurrency. Bitwise Aims for SEC Approval With Spot Ethereum ETF, Backed by Correlation Data Bitwise’s proposed ETF, conducted in […]
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Coinbase Files Legal Challenge Against SEC for Crypto Regulation Clarity
In a significant legal confrontation, Coinbase has filed a challenge against the U.S. Securities and Exchange Commission (SEC) in the Third Circuit, contesting the SEC’s refusal to establish clear rulemaking for digital assets. San Francisco Crypto Exchange Coinbase Initiates Legal Action Against SEC’s Crypto Regulation Approach Coinbase’s legal action underscores the ongoing tension between the […]
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Sony Files ‘Super-Fungible Token’ NFT Patent
Sony, the Japanese electronics behemoth, has filed a patent involving the use of non-fungible tokens (NFTs) as part of in-game mechanics. Sony’s patent describes the usage of a “Super-Fungible Token,” an amalgamation of a set of gaming assets, allowing the selection of only one of them per time in the gaming implementation. Sony Files Patent […]
Bitcoin News
This Banking Giant Files For Bitcoin ETF Application In Hong Kong
Following the recent approval of spot Bitcoin ETF (Exchange-Traded Funds) in the US and guidelines from Hong Kong’s Securities and Futures Commission (SFC) published in December of 2023, there has been increasing speculation about the launch of a spot Bitcoin ETF in Hong Kong this year. In a recent development, the first spot Bitcoin ETF application has been filed to the SFC for approval.
Chinese Financial Giant Takes The Lead
Earlier this month, Venture Smart Financial Holdings Ltd. (VSFG) expressed its plans to apply for a spot Bitcoin ETF with the SFC to be launched this quarter. Similarly, asset management firms like Samsung Asset Management have shown their interest in exploring the possibility in the future.
A report from Tencent News revealed that Harvest Fund Management sent the first-ever spot Bitcoin ETF application in Hong Kong to the SFC on January 26, with the possibility of approval coming after the Lunar New Year at the earliest.
According to the news site, Hong Kong’s SFC wants to accelerate the approval of the first ETF after the US Securities and Exchange Commission (SEC) authorized the listing of the spot crypto products this month. The regulator’s plan includes listing the first ETF on the Hong Kong Stock Exchange after the Spring Festival.
Additionally, the report highlights the possibility of the SFC taking the same route as the US SEC and approving all applications simultaneously.
How Will Hong Kong’s Spot ETFs Compare To The US?
Regarding the performance of the investment products after the approval, a Hong Kong fund professional told Tencent News that “judging from the performance of the U.S. Bitcoin spot ETF, even if the Hong Kong Securities and Futures Commission approves multiple institutions at once, it may end up performing about the same as the U.S. market.”
However, some family office investor managers in Hong Kong suggested to the news site that “there may be some gap between the scale of Hong Kong spot ETF subscriptions and the United States.” The investor managers added that there’s real interest in subscribing to spot ETFs in Hong Kong, opposite to the “complexity of investment categories and operations” that stopped them from investing in the Bitcoin market before.
Moreover, the news sites reported that “compared with spot ETFs in the United States, in addition to accepting legal currency subscriptions, Hong Kong’s spot ETFs may also increase the possibility of direct Bitcoin subscriptions.”
Despite the interest and plans previously suggested by other investment and asset management firms, no organization has applied for a Spot Bitcoin ETF yet. Harvest Fund Management and the SFC haven’t issued further comment.
Terraform Labs Files for Bankruptcy in US Amid SEC Lawsuit
Terraform Labs has filed for Chapter 11 bankruptcy in the U.S. amid ongoing litigation with the U.S. Securities and Exchange Commission (SEC). The company stated in its bankruptcy filing that “funds will be available for distribution to unsecured creditors.” Meanwhile, Terraform Labs co-founder Do Kwon is facing an upcoming SEC trial and extradition proceedings.
Terraform Labs Seeks US Bankruptcy Protection
Terraform Labs (TFL) filed for Chapter 11 bankruptcy protection in the United States on Sunday. The company and its co-founder Kwon Do-hyeong, aka Do Kwon, are in an ongoing litigation with the U.S. Securities and Exchange Commission (SEC) following the Terra blockchain’s implosion.
In its filing with the bankruptcy court in Delaware, Terraform Labs listed assets and liabilities in the range of 0 million-0 million. Its estimated number of creditors lies between 100 and 199. “Funds will be available for distribution to unsecured creditors,” the filing states.
The company has pledged to meet all financial obligations to employees and vendors throughout the Chapter 11 proceedings without seeking additional financing, CNBC reported, adding that Terraform Labs also plans to continue expanding its Web3 offerings. The news outlet quoted the company as saying:
The filing will allow TFL to execute on its business plan while navigating ongoing legal proceedings, including representative litigation pending in Singapore and U.S. litigation involving the Securities and Exchange Commission (SEC).
Do Kwon, charged by the SEC with defrauding investors out of billions of dollars following the collapse of luna cryptocurrency and stablecoin terrausd, will face a delayed trial. The SEC’s case against Terraform Labs and Kwon has been pushed back to April to facilitate Kwon’s extradition proceedings from Montenegro, where he remains after an arrest warrant was issued by South Korean authorities in late 2022. Separately, Daniel Shin, the other co-founder of Terraform Labs, was indicted in South Korea in April last year.
Terraform Labs CEO Chris Amani said in a statement: “We have overcome significant challenges before and, against long odds, the ecosystem survived and even grew in new ways … we look forward to the successful resolution of the outstanding legal proceedings.”
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