Brazilian cryptocurrency asset manager Hashdex has announced plans to launch a pioneering hybrid spot exchange-traded fund (ETF) that will track the values of both Bitcoin and Ethereum. This initiative marks a significant step in providing investors with diversified exposure to the leading cryptocurrencies through a regulated public securities market.

"The Shares are designed to provide a straightforward means of obtaining investment exposure to Bitcoin and Ether through the public securities market, as opposed to direct acquisition, holding, and trading of spot crypto assets on a peer-to-peer or other basis or via a crypto asset platform," the filing states.

Hashdex intends to use at least two custodians, BitGo and Coinbase, to ensure the security and reliability of the ETF. The Hashdex Nasdaq Crypto Index US ETF will be capitalization-weighted, initially comprising 70.54% Bitcoin (BTC) and the remainder in Ethereum (ETH). The portfolio's weightings will be adjusted quarterly to reflect market value changes.

The company has also left the door open for the inclusion of additional digital currencies in the future, subject to approval by the U.S. Securities and Exchange Commission (SEC). Hashdex's Brazil-based crypto index ETF already includes assets such as Solana (SOL), XRP, Cardano (ADA), Litecoin (LTC), and Polygon (MATIC), alongside Bitcoin and Ethereum.

James Seyffart, an analyst at Bloomberg Intelligence, supports the introduction of such a product in the U.S., suggesting it aligns with the broader interest in digital assets beyond Bitcoin. He noted, "People who believe digital assets have broader use than just what Bitcoin currently offers would find this product to make a ton of sense, especially for advisors seeking diversified exposure to the cryptocurrency space."

Hashdex's new proposal comes after the firm withdrew a previous ETF application in late May, which combined futures-based Ether contracts with spot-based Ether. The approval deadline for the new hybrid ETF proposal is projected to be around March 2025, according to Seyffart.

This innovative ETF, if approved, could provide a balanced and diversified investment option for those looking to gain exposure to the leading cryptocurrencies, potentially setting a new standard for crypto-based financial products in the U.S. market.