The US Securities and Exchange Commission (SEC) has decided to delay its ruling on the spot Bitcoin exchange-traded fund (ETF) application submitted by Hashdex and the Ethereum futures ETF application from Grayscale.
Initially, the SEC was required to make a decision on both applications by November 17. However, the regulatory body has extended the timeline by an additional 45 days. The new decision deadline for both the Hashdex Bitcoin ETF and Grayscale Ethereum futures ETF is now scheduled for January 1, 2024.
SEC Postpones Decision on Hashdex’s Distinctive Spot Bitcoin ETF
The SEC postponed the decision on Hashdex’s Bitcoin ETF application, even though the asset manager had a unique approach.
Breaking: NYSE files a modification to another ETF, to be now called the Hashdex Bitcoin ETF
Their application is unique in that it will not use Coinbase, they will use prices and acquire spot BTC via CME.
It will hold a mixture of spot & futures positions
Hard to reject imo pic.twitter.com/K1ABKKZX5o— Alistair Milne (@alistairmilne) August 25, 2023
Hashdex is taking a different approach compared to recent filings for its Bitcoin ETF. Unlike others, Hashdex plans to acquire spot BTC directly from physical exchanges on the Chicago Mercantile Exchange (CME). This unique strategy means that the ETF’s pricing will be solely dependent on CME.
The 19b-4 filing outlines that this method is chosen to “avoid any exposure to potential manipulation from unregulated exchanges.” However, the SEC has stated that it requires “sufficient time to consider the proposed rule change and the issues raised therein.” As a result, the SEC has delayed its decision on Hashdex’s Bitcoin ETF application.
Analysts: Grayscale’s ETH Futures ETF a “Trojan Horse”
In response to the SEC’s decision delay on Grayscale’s Ethereum futures ETF, James Seyffart, an ETF analyst at Bloomberg, characterized Grayscale’s strategy as a game of chess with the commission. Seyffart observed that if the SEC were to approve Grayscale’s Ethereum ETF, it would enable the digital asset manager to highlight the SEC’s perceived inconsistency in deciding between futures and spot.
UPDATE: @Grayscale Ethereum futures 19b-4 filing was delayed. Nothing remotely surprising about this. They've also filed separately to convert $ETHE into an ETF. pic.twitter.com/bBNOBiFN3U
— James Seyffart (@JSeyff) November 15, 2023
Expressing skepticism, Seyffart stated, “I doubt Grayscale even intends to launch this. It’s nothing but a trojan horse to get a 19b-4 order from the SEC. And watch them try to either approve and argue why this is different from spot.”
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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