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Hashdex, an investment manager, has withdrawn its proposal for a spot Ether exchange-traded fund (ETF). A document submitted to the United States Securities and Exchange Commission (SEC) on May 28 shows that the proposed rule change to allow the introduction of the Hashdex Nasdaq Ethereum ETF has been withdrawn. 
Also Read: <a href="https://www.cryptopolitan.com/hashdex-tidal-partner-to-introduce-btc-etf/" data-type="post" data-id="502731">Hashdex and Tidal partner to introduce groundbreaking Bitcoin ETF</a> 
The change <a href="https://www.sec.gov/files/rules/sro/nasdaq/2024/34-100234.pdf" target="_blank" rel="noreferrer noopener nofollow">occurred</a> on May 24, a day after the<a href="https://www.cryptopolitan.com/sec-approves-all-spot-ethereum-etfs/" target="_blank" data-type="post" data-id="530256" rel="noreferrer noopener"> company received</a> the green light from the SEC to launch eight similar financial products. 
The reasons for Hashdex’s withdrawal remain unclear and equally, the company has not expressed any intention of resubmitting the proposal. A source close to the investment manager said that Hashdex “no longer plans to bring a single asset Ether ETF to the market. ” 
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 Hashdex’s withdrawal notice | Source: U.S. SEC
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<h2 class="wp-block-heading" id="sec-approves-spot-ether-etfs-for-major-firms">SEC Approves Spot Ether ETFs for Major Firms</h2> 
Some major firms received approval for their 19b-4 filings on May 23. These include VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise.&nbsp; 
 Also Read: <a href="https://www.cryptopolitan.com/ether-etfs-coming-in-q2-2024-probably-not/" data-type="post" data-id="500544">Ether ETFs coming in Q2 2024? Probably not</a> 
These approvals will allow these companies to list and trade spot Ether ETFs, with launches expected in June. Unlike Hashdex’s combined approach, these applicants focused on purely spot-based Ether ETFs. Late amendments to their filings, such as removing support for ETH staking, were made in response to SEC feedback. 
When Hashdex applied for a place for Ether ETF, the firm proposed a different model incorporating physical Ether and Ether Futures contracts. The fund intended to tackle issues of market manipulation as it autonomously followed the same Nasdaq Ether Reference Price movements daily. The initial filing submitted in September 2023 included the intention of holding spot Ether, Ether futures contracts, and cash only. This was meant to help deter manipulation of the spot prices in the market. 
<h2 class="wp-block-heading" id="nasdaq-files-proposal-managed-by-toroso-investments">Nasdaq Files Proposal Managed by Toroso Investments</h2> 
The Nasdaq stock exchange filed the proposal with the SEC in September 2023 to list the Hashdex Nasdaq Ethereum ETF. Also, the fund was managed by Toroso Investments, which is registered as a commodity pool operator with the Commodity Futures Trading Commission and a member of the National Futures Association. Over recent months, the proposal received <a href="https://www.sec.gov/comments/sr-nasdaq-2023-035/srnasdaq2023035.htm" target="_blank" rel="noreferrer noopener nofollow">public comments</a> from lawmakers. Democratic Senators Laphonza Butler and Jack Reed urged the SEC not to approve spot Ethereum ETFs. Conversely, Representatives French Hill, Tom Emmer, and Josh Gottheimer <a href="https://x.com/RepFrenchHill/status/1793621840021360903/photo/1" rel="nofollow" target="_blank">supported </a>the approval of these funds. 
<h2 class="wp-block-heading" id="further-actions-for-other-ether-etfs">Further Actions for Other Ether ETFs</h2> 
For the approved spot Ether ETFs, issuers need their S-1 registration statements to become effective before trading can commence. The SEC has begun discussions with issuers about their S-1 forms, though the duration of this process remains uncertain. Analysts speculate it could take weeks before the funds begin trading. 
Cryptopolitan reporting by Damilola Lawrence

Hashdex Withdraws Application for Spot Ether ETF

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