The United States Securities and Exchange Commission (SEC) Bitcoin ETF decision is delayed once again, as the agency has postponed announcing a decision on the Spot Exchange-Traded Fund (ETF) application proposed by Hashdex, a digital asset management firm. The new date for ETF approval is January 1, 2024, as per legal documents. Interestingly, the regulator has postponed a multitude of ETFs over the past few months.
SEC Bitcoin ETF Decision Delayed Once Again
Hashdex applied in September to transform its ETF listed on the New York Stock Exchange (NYSE) to a Spot ETF. This move was quite distinct from other applications because it utilized a new approach to managing the ETF’s assets.
It is crucial to mention here that Hashdex includes multiple assets, including Bitcoin Futures Contracts, Spot Bitcoin, and cash. The strategy is efficient in reducing the risks associated with market manipulation and enhances the stability of the asset manager’s ETF.
The SEC submitted a filing on November 15, confirming the delay in Hashdex’s application. The regulator said that it will be extending the review period by an additional 45 days, adding that it needs more time to thoroughly assess the proposed rule change and address the issues raised during the evaluation process.
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the SEC said.
Hashdex Bitcoin Futures ETF
The Hashdex Bitcoin Futures ETF (ticker: DEFI) is the world’s first Bitcoin Futures ETF registered solely under the Securities Act of 1933, explained the asset management firm in a press release. The ETF has been created in cooperation with Teucrium Trading, LLC, and Victory Capital Management, Inc.
Notably, Victory Capital is a global asset manager with $159.1 billion in assets under management as of August 31, 2022, while Teucrium is a ’33 Act fund specialist focused on commodities funds.
Bruno Sousa, Head of U.S. at Hashdex stated in September:
“At Hashdex, we have an unwavering dedication to consistently find innovative ways of building products that provide investors with options to gain crypto exposure – our latest product, DEFI, does just that by honoring Bitcoin as what we believe is the foundation of the Decentralized Finance revolution.”
Interestingly, the SEC has postponed multiple Bitcoin ETFs over the past few months. Some of the notable applications that currently rest with the regulator include the BlackRock Bitcoin Spot ETF, the ARK 21Shares Bitcoin ETF, the Grayscale Bitcoin ETF proposal, and the Invesco Galaxy Bitcoin ETF, among others.
Related reading: Gensler: SEC Actively Assessing Multiple Bitcoin ETF Submissions
In a recent report, CNBC reached out to Bryan Armour, director of passive strategies research for North America at Morningstar, who revealed that the SEC is “taking the most recent batch of filings more seriously” and an approval might be coming soon.