Hashdex Selects BitGo as Custodian for Bitcoin ETF Amid Ongoing SEC Discussions

As the new year approaches, the cryptocurrency community eagerly awaits a critical decision on the approval or rejection of a bitcoin exchange-traded fund (ETF).

In a notable development, Hashdex, a potential issuer of a bitcoin ETF, made substantial modifications to its documentation on a Friday. The company not only appointed BitGo as its bitcoin custodian but also rebranded its Bitcoin Futures ETF to the Hashdex Bitcoin ETF. This strategic maneuver is part of a collaborative effort among various firms, including Hashdex, to secure approval for the United States' first spot bitcoin ETF early in the coming year.

Hashdex's decision to partner with crypto custodian BitGo sets it apart from the majority of applicants who have opted for agreements with crypto exchange Coinbase. Fidelity has taken a different route by expressing its intention to self-custody, while VanEck has selected Gemini as its custodian.

This significant update follows a meeting between the Securities and Exchange Commission (SEC) and representatives from multiple ETF applicants. Officials from BlackRock, Valkyrie, Fidelity, Grayscale, and Ark engaged in discussions with the SEC, as detailed in the filed reports. The regulatory body has set a final deadline of December 29 for applicants to submit any last amendments to their proposals, according to information from Reuters.

Recent weeks have witnessed a growing sense of optimism within the industry, fueled by the possibility of a prompt regulatory approval for a spot bitcoin ETF. Several applicants have engaged with the SEC, presenting various amendments to their applications. These amendments not only include a commitment to issuing ETFs with cash creation (if approved) rather than in-kind but also address other minor details, signaling the SEC's willingness to consider approval.

The Ark 21Shares filing is under a looming deadline set for January 10, 2024. All eyes are on the SEC for a decision, whether it be an approval or rejection, expected by that date. Nevertheless, Reuters has reported the potential for a decision to be announced in the initial days of the new year, adding to the anticipation surrounding the fate of the first U.S. spot bitcoin ETF.

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