SEC Delays Decision on HashDex’s Spot Bitcoin ETF
- The SEC has delayed responding to HashDex’s Bitcoin ETF application until 2024.
- The regulator also moved its decision on Grayscale’s application to convert its Ethereum Trust into an ETF to January 1, 2024.
- Some crypto experts believe the SEC is using a delay tactic to stall the hype around these applications.
The US Securities and Exchange Commission (SEC) is postponing making a decision on Hashdex’s application to turn its current bitcoin futures exchange-traded fund (ETF) into a spot option.
Today’s decision comes as no surprise to many, given the SEC’s continued refusal to approve any spot Bitcoin ETF filing. Hashdex submitted a request to change its bitcoin futures ETF to a spot bitcoin ETF in September, joining the likes of BlackRock, Grayscale, Fidelity, and WisdomTree. The SEC’s decision on HashDex’s application was due on November 17, but two filings show that the regulator decided to extend the decision.
The regulatory body has yet to provide a response to the recent group of applications. The SEC’s previous denials were based on its concerns about a number of issues, including the vulnerability of Bitcoin to market manipulation and the absence of surveillance-sharing arrangements.
However, following the approval of bitcoin futures ETFs, applicants now claim these problems have been resolved or are not currently applicable. Interestingly, an appeals court ordered the SEC to review Grayscale’s Bitcoin ETF application in August. But it remains to be seen how the regulator responds.
The SEC also announced on Wednesday that it would be extending its review period for Grayscale’s Ethereum Futures Trust. The regulator moved the deadline for making a final decision to January 1, 2024. The SEC will now have more time to review its decision ahead of the new date.
Grayscale submitted an application earlier in October to turn its Ethereum Trust into an ETF. The company’s CEO, Michael Sonnenshein, said the move was important in bringing Ethereum closer to compliance with US laws.
The SEC would possibly have more decisions to make in the coming weeks as several companies in the financial world continue to show interest in crypto-based ETFs. For example, Ark Invest and 21 Shares recently announced plans to launch several funds, including Bitcoin and Ethereum futures.