Hashdex Bitcoin Futures ETF Filed Under ’33 Act Goes Live

Asset manager, Hashdex has announced the launch of Hashdex Bitcoin Futures ETF on the New York Stock Exchange (NYSE) as per a Bloomberg report.

The ETF product developed in collaboration with Teucrium Trading and Victory Capital Management will launch under the ticker symbol “DEFI” beginning on Friday, September 16.

This is the first Bitcoin ETF to be filed under the Securities Act of 1933, as existing Bitcoin ETFs in the US were filed under the Investment Company Act of 1940 and are all backed by Bitcoin futures contracts rather than physical Bitcoin. 

According to Marcelo Sampaio, the milestone continues the firm’s commitment to providing investors with innovative and regulated products.

SEC Opposes Crypto Spot ETF

According to the SEC chair, Gary Gensler had previously argued that the Investment Company Act of 1940 provided better protection for investors. Therefore, the regulator before now has denied listing spot-based ETFs that are backed by digital assets.

The regulator has so far rejected 16 Bitcoin spot ETF applications for failing to meet its requirement.

Top of that list is Grayscale Investment’s application to convert its Bitcoin to spot ETF which was turned down by the regulator after months of delay.

The asset manager has since appealed the SEC’s ruling after it contracted the service of legal luminary Donald Verilli Jr. as Grayscale says it has an unwavering commitment to converting GBTC to ETF.

The lawsuit between the regulator and Grayscale can take up to two years to get a final verdict according to the firm’s Chief Legal Officer, Craig Salm.

With the new development, it begs the question if the regulator has changed its position on crypto ETFs as the new fund was filed and approved under the 1933 law. The Securities Act of 1933 is the designated rule guarding ETF that would be used for a spot fund in the US.

The approval of the new ETF filed under the 1933 law signals a positive sign for Bitcoin spot ETF in the US.

Meanwhile, Brazil, Canada, and other European countries have since launched their spot Bitcoin EFT products. Brazil aimed to launch five crypto ETFs last year. Hashdex launched three of the ETFs while the other two were launched by fintech firm QR Capital.