The SEC has announced that it will delay the decision on Hashdex’s application to convert its existing Bitcoin futures ETF into a spot product until January 1, 2024.
Hashdex’s ETF Conversion Application Faces SEC Delay
Hashdex, a well-known fund manager, submitted an application in September to convert its ETF listed on the New York Stock Exchange into a spot exchange-traded fund. This is significant because the proposal involves a unique approach to managing the ETF’s assets.
The plan is to hold a diversified mix of assets, including Bitcoin Futures Contracts, Spot Bitcoin, and cash. This strategy aims to reduce risks associated with market manipulation and enhance the ETF’s stability.
In response to Hashdex’s application, the SEC issued a filing on November 15, explaining its decision to extend the review period by an additional 45 days. The agency cited the need for more time to thoroughly assess the proposed rule change and address the issues raised during the evaluation process.
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the SEC stated in its announcement.
SEC Delays Decision on Grayscale’s Futures-Based ETH ETF
At the same time, the SEC delayed its decision on Grayscale’s attempt to launch a new futures-based Ethereum ETF. The delay in this case is related to a rule change associated with Grayscale’s proposed Ethereum futures ETF.
Grayscale Investments filed for a new ETF tracking Ethereum futures in September under the Securities Act of 1933 and the Investment Company Act of 1940. The SEC has previously approved Bitcoin futures ETFs registered under both Acts.
These delays come at a time of heightened anticipation within the cryptocurrency industry for potential approval of a spot Bitcoin ETF. The SEC has rejected all attempts thus far but there are numerous applications seeking approval for similar products tied to Ethereum. The regulator has yet to indicate how it might ultimately rule on these latest submissions, leaving industry players in anticipation and uncertainty.
Hot Take: Crypto Industry Waits as SEC Delays Decisions
The cryptocurrency industry continues waiting for potential approvals of spot Bitcoin ETFs as regulatory decisions are delayed. With multiple applications pending and no clear indication from the SEC on how it will rule, uncertainty looms over this aspect of crypto investing.
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