Hashdex, one of the 13 asset management firms vying for a coveted spot in the Bitcoin exchange-traded fund (ETF) market, is optimistic about the prospects for the first spot Bitcoin ETF in the United States.
According to Hashdex’s U.S. and Europe head of product, Dramane Meite, the anticipated arrival of a spot Bitcoin ETF in the U.S. has shifted from a question of “if” to a matter of “when.”
In a 2024 outlook report released on December 4, Meite expressed the belief that U.S. investors will gain access to a spot Bitcoin ETF by the second quarter of the upcoming year, with a spot Ether ETF likely to follow suit.
Currently, Hashdex is among the 13 asset managers that have submitted applications for a spot Bitcoin ETF to the U.S. Securities and Exchange Commission (SEC).
Additionally, Hashdex has proposed a hybrid Ether ETF, incorporating both futures and spot contracts, to the regulatory authority.
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Although Bloomberg ETF analysts, James Seyffart and Eric Balchunas, have estimated a 90% likelihood of spot Bitcoin ETF approvals in the days leading up to January 10, 2024, it is important to note that the separate Form S-1 application must also receive approval before an ETF can be launched.
Seyffart has emphasized that there could be a period of several weeks or even months between approval and the actual ETF launch.
Companies typically use Form S-1 to inform the SEC about proposed rule changes, requiring endorsement from the agency’s Division of Corporation Finance.
Meite, in Hashdex’s report, highlighted that the introduction of spot Bitcoin and Ether ETFs would mark a significant milestone, as established legacy asset managers with strong brand recognition would be offering cryptocurrency products to their customers for the first time.
He further speculated that this development could unlock a colossal $50 trillion market, surpassing the combined sizes of Europe, Canada, and Brazil—the only three global markets currently featuring spot crypto exchange-traded products.
In all likelihood, the majority of interest in single-asset ETFs would gravitate towards Bitcoin and Ether due to their widespread recognition and minimal differentiation among incumbent offerings.
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