Hashdex, a potential issuer of a Bitcoin exchange-traded fund (ETF), has updated its paperwork, revealing BitGo as its chosen Bitcoin custodian. This development comes amidst the fervent anticipation within the cryptocurrency community for the approval of the first spot Bitcoin ETF in the United States early next year.
BitGo secured as custodian in uncommon agreement
Hashdex’s amended S-1 filing discloses a partnership with BitGo, a departure from the trend where the majority of ETF applicants have opted for agreements with crypto exchange Coinbase. This atypical decision positions Hashdex uniquely among the over a dozen applicants, emphasizing the company’s strategic diversification in custodial arrangements.
SEC meetings and decisive deadline loom
The disclosure follows a recent meeting between the U.S. Securities and Exchange Commission (SEC) and representatives from several ETF applicants, including industry giants such as BlackRock, Valkyrie, Fidelity, Grayscale, and Ark. These interactions took place with regulators setting a final deadline for amendments to applications on December 29, signaling the critical juncture in the SEC’s decision-making process.
As applicants fine-tune their proposals, addressing intricate details such as cash creation for ETFs and engaging in discussions with the SEC, the heightened activity implies a potential openness from regulators towards granting approvals. The SEC’s verdict on the applications, including Hashdex’s, is expected to be unveiled by January 10, 2024. Notably, sources suggest that an announcement may be made in the early days of the new year.
Hashdex Bitcoin ETF awaits regulatory green light
It is essential to know that with the SEC signaling a willingness to engage with proposed amendments and specifications, optimism has surged regarding the approval of a spot bitcoin ETF in the near future. The dynamics of custodial arrangements, as evidenced by Hashdex’s collaboration with BitGo, add an intriguing dimension to cryptocurrency investment products.
Overall, Hashdex’s strategic move to partner with BitGo as its bitcoin custodian marks a departure from the prevailing trend in the ETF space. As the SEC deadline approaches, the industry awaits a potential breakthrough in the form of the first spot Bitcoin ETF approval, with Hashdex positioned uniquely in this unfolding narrative.
