Hashdex has officially withdrawn its application for the Hashdex Nasdaq Ethereum ETF, according to documents filed with the U.S. Securities and Exchange Commission (SEC) on May 24. The filing, submitted on May 28, has left investors and industry observers speculating about the reasons behind this unexpected move. The Hashdex Nasdaq Ethereum (ETH) exchange-traded fund (ETF) aimed to combine spot Ether holdings with Ether futures contracts, a strategy designed to mitigate market manipulation risks. However, the precise reasons for the withdrawal remain undisclosed. It is speculated that evolving regulatory conditions and internal strategic considerations within Hashdex might have played a role. This withdrawal comes just a day after the SEC approved Ether ETFs from major players like VanEck, BlackRock, and Fidelity, highlighting the market’s competitive pressures and regulatory challenges. Despite the approval of other Ethereum ETF proposals, the issuers still need to have their S-1 registration statements become effective before trading can commence. Former U.S. SEC Chairman Jay Clayton remarked that the recent approval of listing applications is a positive indicator for the future of these products, but several key issues still need to be addressed. Bloomberg analyst Eric Balchunas has suggested that the market’s reaction to Ethereum ETFs may not be as enthusiastic as it was for Bitcoin ETFs, predicting that Ethereum ETFs could trade at one-fifth of the volume of Bitcoin ETFs.
