SEC Delays Decision on Bitcoin and Ethereum Futures ETFs
The Securities and Exchange Commission (SEC) has announced that it needs more time to consider whether to allow a Bitcoin futures ETF and an Ethereum futures ETF to convert to spot ETFs. The agency stated in separate filings on Wednesday that it would take an additional 45 days to make a decision on the matter by January 1, 2024.
In response to the September filing for the Hashdex Bitcoin futures ETF application, which proposed converting its exchange-traded fund listed on the New York Stock Exchange into a spot product, the SEC declared that it requires more time to consider the proposed rule change and the issues raised therein.
Hashdex’s proposal is unique as it seeks to hold a mix of “Bitcoin Futures Contracts, Spot Bitcoin, and cash” in order to mitigate the risks of market manipulation. Other major organizations like Fidelity and BlackRock are also seeking approval to launch spot Bitcoin ETFs, with the anticipation of their approval contributing to a rebound in the crypto market.
Ethereum Futures ETF Decision Postponed
The SEC also used similar language in another filing regarding its decision to delay ruling on a rule change related to Grayscale’s proposed Ethereum futures ETF. The ruling for this case is also set for the first of the new year. Grayscale’s filing for the ETF came shortly after the SEC cleared the way for the first Ethereum futures ETFs, with VanEck and ProShares also launching Ethereum futures-based ETFs.
Hot Take: Uncertainty Continues for Crypto Investors
The SEC’s decision to delay rulings on Bitcoin and Ethereum futures ETFs has created uncertainty for crypto investors, as they await further clarity on the regulatory landscape for these investment products. The delayed decisions could impact market sentiment and investment strategies in the crypto space, emphasizing the need for clear regulatory guidelines to support the growth and stability of cryptocurrency markets.
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