[NEWS] SEC postpones decision on Hashdex's Bitcoin spot ETF application

On the 15th, the SEC (U.S. Securities and Exchange Commission) announced that it would extend the review of Hashdex's application to convert its Bitcoin Futures ETF into a Bitcoin Spot ETF. In addition, it will also postpone the review of Grayscale's application to convert its Ethereum Futures ETF into an Ethereum Spot ETF. The next review deadline for both is January 1, 2024.

The SEC stated that it "still needs more time to make a decision" on whether to convert the Bitcoin Futures ETF and Ethereum ETF into spot ETFs.

Hashdex applied in October this year to convert its exchange-traded fund "Hashdex Bitcoin Futures ETF," listed on the New York Stock Exchange, into a spot ETF. On the 15th, the SEC said it would need another 45 days to review and decide on the application.

HashDex's application to convert an existing Bitcoin futures ETF into a spot ETF is said to be unique because it proposes that fund managers hold a combination of "Bitcoin futures contracts, physical Bitcoin, and cash" to avoid the risk of market manipulation.

Major asset managers such as BlackRock and Fidelity are also seeking SEC approval to launch Bitcoin spot ETFs. The prospect of a Bitcoin spot ETF being approved is helping the cryptocurrency market recover.

The SEC pointed out that Grayscale's updated application documents are almost identical to the previous one. It then said that the rules for Grayscale's Ethereum spot ETF should be changed. This implies that it may be approved if the rules are changed.

The SEC has not revealed which companies it will approve among the applicants for a Bitcoin spot ETF. It has postponed its review decision on all applications.

SEC continues to refuse approval

The SEC has continued to refuse to list spot ETFs for general investors. A dozen companies have applied to launch Bitcoin spot ETFs this year, but all have continued to postpone their decisions, citing concerns about Bitcoin's susceptibility to market manipulation and the lack of oversight sharing agreements.

The applicants now argue that these concerns have been resolved after the approval of a Bitcoin futures ETF in 2021. An appeals court also ruled similarly this year.

Still, SEC Chairman Gary Gensler said last month that "dedicated staff are currently reviewing" Bitcoin spot ETFs.

Source:Bloomberg
Image: Shutterstock

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