SEC Delays Decision on Hashdex and Grayscale ETFs, Setting New Deadline for 2024″

“SEC Delays Decision on Hashdex and Grayscale ETFs, Setting New Deadline for 2024”

The United States Securities and Exchange Commission (SEC) has announced a delay in its decision on Hashdex’s spot bitcoin ETF application and Grayscale’s Ether futures filing. The regulatory body specified that it plans to reach a decision on both applications by January 1, 2024.

The SEC’s decision to extend the review period for Hashdex’s application to convert its existing bitcoin futures ETF into a spot vehicle, as well as Grayscale’s proposal for a new futures-based Ether ETF, was outlined in an official filing. The initial deadline for both filings was November 17, but the SEC, in response to Hashdex’s application in September, opted for an additional 45 days, pushing the decision deadline to the beginning of the new year.

Hashdex’s unique approach involves holding a combination of Bitcoin futures contracts, spot Bitcoin, and cash to mitigate risks associated with market manipulation. Other major institutions like Fidelity and BlackRock are also seeking SEC approval for their own spot bitcoin ETFs.

The SEC used similar language in another filing to explain the delay in ruling on a rule change related to Grayscale’s proposed Ethereum futures ETF. The decision for this case is also deferred to January 1, 2024. Grayscale filed for the ETF shortly after the SEC cleared the way for the first Ethereum futures ETF. Notably, VanEck and ProShares have already launched Ethereum futures-based ETFs.

These delays coincide with growing anticipation and speculation regarding the SEC’s approval of a spot bitcoin ETF. While over a dozen institutions and asset managers have filed applications for spot bitcoin ETFs in 2023, the SEC has consistently rejected such efforts. Concerns about market manipulation and surveillance-sharing documents have been raised, but applicants argue that these issues have been addressed or are no longer relevant after the approval of bitcoin futures ETFs.

As the SEC faces the decision on this latest batch of ETF applicants, the cryptocurrency market awaits clarity on the regulatory stance toward these innovative financial products.

Disclaimer: This article is for informational purposes only and does not constitute legal, tax, investment, financial, or other advice.