Hashdex, competing with 12 other asset managers for approval of a spot Bitcoin ETF, anticipates the launch of the first such ETF in the United States by the second quarter of 2024, with a spot Ether ETF likely to follow.
Dramane Meite, the head of product for Hashdex in the U.S. and Europe, shared insights in a 2024 outlook report released on December 4. He noted that the conversation around a U.S. spot Bitcoin ETF has shifted from “if” it will happen to “when” in 2023. Hashdex is among the 13 asset managers who have submitted applications for a spot Bitcoin ETF to the U.S. Securities and Exchange Commission (SEC). Additionally, the firm has proposed a hybrid Ether ETF, combining futures and spot contracts, to the regulator.
Bloomberg ETF analysts James Seyffart and Eric Balchunas have estimated a 90% chance of spot Bitcoin ETFs getting the green light around January 10, 2024. However, Seyffart has pointed out that this prediction pertains only to the 19b-4 applications, and a separate Form S-1 must also be approved for an ETF to be launched. He mentioned in November that there could be a significant delay between approval and the actual launch of an ETF.
Form S-1 is used by companies to inform the SEC about proposed rule changes, requiring approval from the agency’s Division of Corporation Finance. In the Hashdex report, Meite expressed that the introduction of spot Bitcoin and Ether ETFs would enable “legacy asset managers with thousands of staff and trusted brands” to offer crypto products to their customers for the first time.
He suggested that this development could open up a market worth $50 trillion, surpassing the combined markets of Europe, Canada, and Brazil, where spot crypto exchange-traded products are already available.
Meite anticipates that most interest in single-asset ETFs will be centered on Bitcoin and Ether, owing to their widespread recognition and the limited differentiation among existing offerings.
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