Bittime - The world of investment in the United States is lively again with the presence of new products related to Bitcoin. Hashdex Asset Management, a digital investment management company, officially launched Hashdex Bitcoin ETF (NYSE Arca: DEFI), previously known as Hashdex Bitcoin Futures ETF.
Hashdex Bitcoin ETF Conversion
This launch marks Hashdex's conversion from a Bitcoin futures ETF to a spot Bitcoin ETF, meaning it directly owns physical Bitcoin. This name change and change in investment strategy will be effective on March 27, 2024.
Hashdex Bitcoin ETF is the eleventh spot Bitcoin ETF that has received approval from the United States Securities and Exchange Commission (SEC) on January 10, 2024. The other ten spot Bitcoin ETFs that have been registered on the United States exchange are:
- Blackrock's iShares Bitcoin Trust (IBIT)
- Fidelity Wise Origin Bitcoin Fund (FBTC)
- Ark 21Shares Bitcoin ETF (ARKB)
- Bitwise Bitcoin ETF (BITB)
- Invesco Galaxy Bitcoin ETF (BTCO)
- WisdomTree Bitcoin ETF (BTCW)
- VanEck Bitcoin Trust ETF (HODL)
- Franklin Bitcoin ETF (EZBC)
- Valkyrie Bitcoin ETF (BRRR)
- Grayscale Bitcoin Trust (GBTC) was previously a Bitcoin trust and has now transformed into a spot Bitcoin ETF.
The benchmark index used by the new Hashdex Bitcoin ETF is the Nasdaq Bitcoin Reference Price-Settlement (NQBTCS). It is worth noting that the Hashdex Bitcoin Futures ETF was initially launched on the NYSE exchange in 2022 as a commodity pool registered under the Securities Act of 1933.
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Hashdex Bitcoin ETF Investment Strategy
In its official announcement, Hashdex explained that in the future, under normal market conditions, the investment policy of the Hashdex Bitcoin ETF is to maximize physical Bitcoin holdings. It is expected that at least 95% of the ETF's assets will be invested directly in spot Bitcoin. Meanwhile, the remaining maximum 5% of ETF assets can be invested in Bitcoin futures contracts traded on CME as well as cash and cash equivalents.
For the smooth operation of this new ETF, Hashdex acts as a digital asset advisor, with Tidal Investments as sponsor. Additionally, Tidal ETF Services was appointed as administrator and Bitgo as custodian for the Bitcoin holdings managed by the ETF.
BTC/USDT Bitcoin Price Today
Source: Bittime.com
On March 28, 2024, the price of Bitcoin BTC/USDT was at $69,112 per coin, down 1.82% in 24 hours.
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Hashdex's View on Bitcoin ETF
Marcelo Sampaio, co-founder and CEO of Hashdex, commented on the launch of the Hashdex Bitcoin ETF. He stated, "Since its founding in 2018, Hashdex has had a strong belief that Bitcoin is a golden opportunity for this generation. This belief drives us to continue to focus on helping investors understand this transformative asset and offering products that enable regulated participation in the blockchain ecosystem."
Implications of Launching Hashdex Bitcoin ETF
The launch of the Hashdex Bitcoin ETF adds to the growing list of safe and regulated Bitcoin investment options in the United States. The presence of a spot Bitcoin ETF offers several advantages for investors, including:
- Ease of ownership: Investors can own Bitcoin indirectly through holding ETF units, without the hassle of storing Bitcoin independently.
- Clear regulation: Bitcoin ETFs listed on major stock exchanges in the United States have gone through a rigorous process or review from regulators, providing security and transparency for investors.
- High liquidity: Bitcoin ETFs can be traded easily on stock exchanges, so investors can get in and out of investments quickly.
Nonetheless, it is important to note that investing in Bitcoin (BTC) , including via spot Bitcoin ETFs, still carries the risk of high price fluctuations. Investors need to have a good understanding of Bitcoin and the risks that come with it before deciding to invest.
The Future of Bitcoin ETFs in the United States
With the presence of eleven spot Bitcoin ETFs that have been approved by the SEC, the United States has become one of the leading countries in terms of regulation and innovation related to crypto investment. It is estimated that in the future more investment products related to Bitcoin and other crypto assets will appear in the United States.
Investors need to pay close attention to these developments and choose investment products that suit their risk profile and financial goals.
Conclusion
The launch of the Hashdex Bitcoin ETF is a significant step forward for the crypto asset market in the United States. This can increase investor accessibility, increase the legitimacy of crypto assets, and strengthen regulations. However, investors need to remain alert to Bitcoin's volatility, regulatory uncertainty and cybersecurity risks.
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How to Buy Bitcoin (BTC) on Bittime
You can buy and sell Bitcoin (BTC) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Bitcoin (BTC) is available on Bittime with the market pair BTC/IDR . To be able to buy BTC/IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Bitcoin (BTC) on Bittime.
Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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