Asset manager Hashdex has filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC) for the first-ever exchange-traded fund (ETF) tracking multiple digital assets.
The proposed ETF aims to provide investors with diversified exposure to numerous digital assets. The deadline for SEC approval will be March 2025, noted James Seyffart, an analyst at Bloomberg Intelligence.
Form S-1 is a key regulatory step for any company wishing to go public with an ETF. The form provides detailed information about the ETF’s structure, underlying assets and the issuer’s financial condition.
Diversification of ETF holdings helps mitigate volatility
Hashdex’s multi-asset ETF wants to track the performance of a basket of digital currencies, including Bitcoin and Ethereum, among others, but may later add Solan and Cardano.
The company’s decision to diversify its ETF portfolios across several major digital assets is intended to mitigate the volatility associated with single-asset ETFs. This strategic move could attract a wider range of investors, from those with risk aversion to those seeking diversified exposure to the digital asset market.
ETFs have become a popular investment tool because they offer a convenient and regulated way to gain exposure to a variety of assets.
An ETF that tracks multiple digital assets would provide retail and institutional investors with an accessible entry point into the crypto space without having to directly oversee the digital assets themselves.
The filing also highlights the growing demand for regulated cryptocurrency investment products.
