Anika Begay
The U.S. Securities and Exchange Commission (SEC) has announced the postponement of the decision to approve a dual crypto spot ETF by Brazilian asset manager Hashdex. This development comes ahead of a critical deadline in the approval process for the proposed investment fund.
SEC Seeks Time to Review Hashdex Mixed Crypto Spot ETF
On June 17, the Nasdaq Stock Exchange Market filed an application with the SEC seeking a rule change that would allow the listing of a combined Bitcoin and Ethereum ETF known as the Hashdex Nasdaq Crypto Index US ETF. Bitcoinist reported that this first-of-its-kind dual ETF will be comprised of 70.54% Bitcoin and 29.46% Ethereum, with the remainder held in cash for operating costs.
However, the Hashdex mixed crypto spot ETF is also subject to the addition of other assets that meet specific criteria and qualifying status. Meanwhile, the American exchange Coinbase and the cryptocurrency trust BitGo are designated custodians of the assets invested in this fund.
In accordance with the Securities Exchange Act, the SEC is required to issue a response to an application for commodity-based trust shares 45 days after filing. However, this Act also allows the Commission to extend this review period to 90 days if necessary, but such a decision must be made within the initial standard 45 days.
According to an August 9 briefing, the SEC has decided to delay its response to the Hashdex Nasdaq Crypto Index ETF. While there were no explicit reasons for the decision, the Commission stated that it needed time to consider all aspects of the proposed investment fund. Following this decision, the SEC is now expected to announce its approval or disapproval decision by September 30, rather than the previous deadline of August 16.
CBOE Resubmits Application for Bitcoin ETF
In other news, the Chicago Board Options Exchange (CBOE) has resubmitted its application for Bitcoin ETF options to the SEC.
Commenting on this development, Bloomberg analyst James Seyffart said that the new application submitted contained 29 more pages than the previous one, indicating that the exchange may have taken place during discussions with the Commission. However, he notes that the timing factor remains largely at play, as a late response from the SEC could push the approval deadline to April 25. However, if both parties are already in communication, this may not be the case.
A Bitcoin ETF option refers to financial derivatives that give investors the right, but not the obligation, to buy or sell shares of a Bitcoin ETF at a predetermined price before a specific expiration date. Bitcoin ETF options are used to hedge against price declines and bet on price movements.
Featured image from Dreamstime, chart from Tradingview
