Hashdex has withdrawn its Ethereum ETF application

Hashdex has withdrawn its Ethereum ETF application

Hashdex has withdrawn it Ethereum ETF application
  • Hashdex withdraws ether ETF application after SEC approval of similar products.
  • Hashdex’s Ethereum ETF application combined spot Ether with futures contracts.
  • The withdrawal decision raises questions amid evolving regulatory landscape and market dynamics.

According to documents filed with the U.S. SEC, Hashdex officially pulled its application for the Hashdex Nasdaq Ethereum ETF on May 24.

The withdrawal of the proposal was reveled in a filing submitted to the SEC on May 28, leaving investors and industry observers curious about the motives behind this abrupt move. Notably, the withdrawal came swiftly on the heels of the SEC’s green light for eight similar financial products.

Hashdex’s proposed ether ETF

Hashdex’s proposed ETF, known as the Hashdex Nasdaq Ethereum ETF, was poised to blend spot Ether holdings with Ether futures contracts, aiming to institute safeguards against potential market manipulation.

Unlike its counterparts, Hashdex’s innovative approach sought to mirror daily fluctuations in the Nasdaq Ether Reference Price, addressing regulatory concerns about price manipulation in the spot market.

However, following the withdrawal of the application, Hashdex’s intentions to forge ahead with a single-asset Ether ETF have been abruptly halted.

While the precise reasons behind this strategic withdrawal remain undisclosed, speculation abounds regarding the evolving regulatory landscape and internal strategic considerations within Hashdex.

Intense competition for ether ETFs among investment firms

The timing of Hashdex’s withdrawal, occurring just a day after the SEC’s landmark approval of ether ETFs from prominent players like VanEck, BlackRock, Fidelity, and others, underscores the intense competition and regulatory scrutiny surrounding crypto investment vehicles.

These approved ETFs, exclusively spot-based Ether ETFs, are poised to debut on various exchanges in June, opening new avenues for institutional and retail investors to gain exposure to the burgeoning Ethereum ecosystem.

Botably, Hashdex’s decision not to proceed with its Ether ETF marks a significant deviation from its previous success with spot Bitcoin ETFs, which were greenlit by the SEC in January.

The company’s Bitcoin ETF utilizes a distinct strategy, eschewing reliance on the Coinbase surveillance sharing agreement in favor of sourcing spot BTC from physical exchanges within the CME market.

While Hashdex’s withdrawal introduces a new twist to the unfolding narrative of crypto ETFs, the broader implications for the industry remain uncertain.

With regulatory scrutiny intensifying and market dynamics evolving rapidly, the path forward for crypto investment vehicles, particularly ETFs, is fraught with complexities and challenges.

As the crypto investment landscape continues to evolve, market participants eagerly await further developments from Hashdex and other industry players, as they navigate the intricate intersection of regulation, innovation, and market demand in the quest to unlock the full potential of digital assets.

Zilliqa price outlook as network hits key milestone

  • Zilliqa (ZIL) recently hit 66 million network transactions.
  • However, ZIL price was down 2.5% at the time of writing, trading near $0.024.

Zilliqa (ZIL) price has traded in the $0.021-$0.026 range. Indeed, the downside pressure on the coin has hindered bulls since the sharp decline witnessed on April 12 and 13 when ZIL price fell more than 30% in two days.

But what’s the outlook for Zilliqa price as the network hits a key transaction milestone? Is Zilliqa 2.0 a potential catalyst for ZIL?

Here’s a look at this coin’s price performance. 

Zilliqa recently hit 66 million transactions

Zilliqa is one of the crypto projects with largest communities around it.

The project has reached nearly 5 million addresses and on May 28, Zilliqa shared a post on X indicating network transactions had surpassed 66 million.

Data also showed close to 110,000 delegators and over 5 million in total staked ZIL, which represents 29% of the total circulating supply. Zilliqa is recording these positive metrics ahead of Zilliqa 2.0, an upgrade aimed at enhancing network scalability, security and interoperability.

A new version of Zilliqa will not only streamline transactions via state sharding, but also bring about greater EVM compatibility, native account abstraction, smart accounts and improved developer tools.

ZIL price outlook

Zilliqa price is down 2.5% in the past 24 hours and flat in the past 30 days as bulls struggle for momentum.

ZIL currently trades at $0.024 across major crypto exchanges, with these levels indicating an unimpressive 2.9% upside in the past year.

A look at ZIL price on the weekly chart shows weakness despite a green candle close this past week. Buyers are also likely to target a positive return this week, but with the RSI and MACD suggesting a bearish course, its possible Zilliqa could retreat to lows of $0.022.

However, if price breaks higher alongside gains for Bitcoin and the big cap altcoins, ZIL could target $0.034 and $0.039 as the next major hurdles.

Notably, Bitcoin and Ethereum are also struggling amid broader crypto downside.