Crypto ETF updates signal regulatory evolution
US crypto index ETFs — in their earliest forms — are now live
ded pixto/Shutterstock modified by Blockworks
This is a segment from the Forward Guidance newsletter. To read full editions, subscribe.
After detailing the growing number of crypto ETF proposals/developments in recent weeks, I wanted to point out the latest.
For one thing, US crypto index ETFs — in their earliest forms — are now live.
Franklin Templeton’s EZPZ ETF (named for the convenience of getting exposure to two crypto assets at once) holds both BTC and ETH. That joined the Hashdex Nasdaq Crypto Index US ETF, which hit the US market on Valentine’s Day.
The dual BTC-ETH exposure is just the first iteration of these products — or so we all expect.
A Tuesday 19b-4 filing signals the Hashdex fund looks to add seven more digital assets (SOL, XRP, ADA, LINK, AVAX, LTC and UNI).
Hashdex CIO Samir Kerbage didn’t want to comment on filings. But he told me he expects both retail and professional investors to seek out diversification, just as they have in traditional asset classes.
“Investors looking to make this type of allocation are also not necessarily interested in trying to individually research each and every asset,” he explained. “They want to make their allocation and know that it gives them exposure to the major use cases and investment theses of crypto as they evolve.”
The same day that 19b-4 was filed, the SEC continued acknowledging various proposed single-asset ETFs — a signal it’s actually considering them. We wrote last week about why some think a litecoin ETF could be next to get the green light.
And most know about the Magnificent Seven stocks. But have you heard of the MAGA Seven? That’s what Defiance ETFs is calling stocks it expects to benefit from Trump’s presidency; the firm seeks to bring them into one wrapper.
Defiance has not specified which companies yet, but I wouldn’t be surprised to see COIN and MSTR included.
Then there are the modifications to existing bitcoin and ether ETFs.
Grayscale and 21Shares, for example, filed late last week to have their ether ETFs start staking the ETH they hold. Nasdaq filed last month for the SEC to allow in-kind creations/redemptions for BlackRock’s bitcoin ETF. Cboe did the same for VanEck funds this week.
On the two latter proposal types, you may recall Hester Peirce noting: “Before these changes can be operationalized, however, the commission may have to make progress on custody and other issues.”
Get the news in your inbox. Explore Blockworks newsletters:
- The Breakdown: Decoding crypto and the markets. Daily.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- 0xResearch: Alpha directly in your inbox.
- Lightspeed: All things Solana.
- The Drop: Apps, games, memes and more.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
