SEC Delays Determination on Hashdex’s Spot Bitcoin ETF Conversion

The SEC has introduced a delay in its decision-making course of on Hashdex’s software to transform its present Bitcoin futures ETF right into a spot product.

The company now goals to make a last dedication by January 1, 2024.

Hashdex’s ETF Conversion Utility Faces SEC Delay

Hashdex, a outstanding fund supervisor, utilized in September to rework its ETF listed on the New York Inventory Alternate right into a spot exchange-traded fund. This transfer is noteworthy as a result of Hashdex’s proposal includes a singular method to managing the ETF’s property.

The fund supervisor plans to carry a diversified mixture of property, together with Bitcoin Futures Contracts, Spot Bitcoin, and money. This technique is designed to mitigate the dangers related to market manipulation and improve the ETF’s stability.

In response to Hashdex’s software, the SEC issued a submitting on November 15, explaining its resolution to increase the evaluation interval by an extra 45 days. The company cited the necessity for extra time to totally assess the proposed rule change and deal with the problems raised in the course of the analysis course of.

“The Fee finds it acceptable to designate an extended interval inside which to take motion on the proposed rule change in order that it has ample time to think about the proposed rule change and the problems raised therein,” the SEC said in its announcement.

SEC Delays Determination on Grayscale’s Futures-Based mostly ETH ETF

Concurrently, the SEC delayed its resolution on Grayscale’s try to launch a brand new futures-based Ethereum ETF. The delay on this case is expounded to a rule change related to Grayscale’s proposed Ethereum futures ETF.

Grayscale Investments filed for a brand new ETF monitoring Ethereum futures in September underneath the Securities Act of 1933 and the Funding Firm Act of 1940. The SEC has beforehand authorised Bitcoin futures ETFs registered underneath each Acts.

These delays come at a time of heightened anticipation throughout the cryptocurrency business for the federal regulator’s potential approval of a spot Bitcoin ETF. The SEC has, to this point, rejected all makes an attempt to checklist such a product for the overall investing public.

In 2023 alone, greater than a dozen corporations have submitted purposes to launch spot Bitcoin ETFs, and a number of other others are looking for approval for comparable merchandise tied to Ethereum, the second-largest cryptocurrency by market capitalization. The regulator has but to point the way it may in the end rule on these newest submissions, leaving the business in anticipation and uncertainty.