Proposal for Hashdex's Ethereum ETF has been withdrawn

A proposal to list and trade shares of the Hashdex Nasdaq Ethereum exchange-traded fund has been withdrawn, according to a filing posted this week. 

Nasdaq posted a notice of withdrawal on Tuesday, a week after the U.S. Securities and Exchange Commission approved 19b-4 forms for eight Ethereum ETFs, excluding Hashdex.

"On May 24, 2024, the Exchange withdrew the proposed rule change," according to the filing.

The Nasdaq stock exchange filed with the SEC in September to list the Hashdex Nasdaq Ethereum ETF. The fund is managed and controlled 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. The fund planned to invest in ether, ether futures contracts listed on the CME, cash and cash equivalents.

Over the past few months, the proposed fund received a few public comments, including from lawmakers. Democratic Sens. Laphonza Butler of California and Jack Reed of Rhode Island urged the SEC not to approve spot Ethereum ETFs generally. Others, including Reps. French Hill, R-Ark., Tom Emmer, R-Minn., and Josh Gottheimer, D-N.J., pressed the SEC to approve the funds.

For the other spot Ethereum proposals, issuers still need to have their S-1 registration statements go effective before trading can begin. The SEC has recently started conversations with issuers about their S-1 forms. It's unclear how long this process will take, but some analysts speculate that it could take weeks.