SEC Delays Decision on Hashdex Dual Crypto Spot ETF Application
The US Securities and Exchange Commission (SEC) recently announced that it will be postponing the approval decision on a dual crypto spot ETF by Brazilian asset manager Hashdex. The SEC cited a critical deadline in the approval process as the reason for the delay, signaling the need for further review of the proposed investment fund.
Nasdaq Seeks Rule Change for Hashdex Mixed Crypto Spot ETF
On June 17, the Nasdaq Stock Exchange Market submitted an application to the SEC, requesting a rule change to allow the listing of a combined Bitcoin and Ethereum ETF named the Hashdex Nasdaq Crypto Index US ETF. This innovative dual ETF, a first of its kind, will consist of a blend of Bitcoin and Ethereum in specific proportions, with the remainder allocated for operational expenses.
- The Hashdex mixed crypto spot ETF may include other assets that meet eligibility criteria.
- American exchange Coinbase and cryptocurrency trust BitGo are designated custodians of the assets within the fund.
SEC Extends Review Period for Hashdex Nasdaq Crypto Index ETF
The Securities Exchange Act requires the SEC to issue a response on commodity-based trust shares applications within 45 days of filing. However, the Act allows for the possibility of extending the review period to 90 days, with a decision to be made within the initial 45-day timeframe. In a brief on August 9, the SEC announced an extension of the review period for the Hashdex Nasdaq Crypto Index ETF.
- The SEC stated a need for more time to evaluate all aspects of the proposed investment fund.
- The new deadline for the SEC’s decision is now set for September 30, moving from the initial deadline of August 16.
CBOE Submits Revised Bitcoin ETF Application
Meanwhile, the Chicago Board Options Exchange (CBOE) has resubmitted its application for Bitcoin ETF options to the SEC. The revised application, with more pages than the previous one, suggests ongoing conversations between the CBOE and the Commission.
- Analysts predict a potential shift in the approval deadline to April 25 if there is a delayed response from the SEC.
- Bitcoin ETF options are financial derivatives that allow investors to buy or sell shares of a Bitcoin ETF at a predetermined price before a specific expiration date.
Hot Take: Stay Informed and Engaged in the Crypto Market
As a cryptocurrency enthusiast, it is essential to stay informed and engaged with the latest developments in the crypto market. The SEC’s decision to delay the approval of the Hashdex dual crypto spot ETF demonstrates the importance of regulatory oversight and thorough evaluation of investment products in the digital asset space. Keep a close eye on regulatory updates and market trends to make informed decisions about your crypto investments.
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