The U.S. Securities and Exchange Commission (SEC) has decided to postpone its decision regarding Hashdex’s request to transform its existing bitcoin futures exchange-traded fund (ETF) into a spot vehicle. Additionally, the agency has deferred action on Grayscale’s endeavor to launch a new futures-based ether ETF.
Hashdex initially submitted its application to convert its bitcoin futures ETF into a spot bitcoin ETF back in September. Similarly, Grayscale, a subsidiary of CoinDesk’s parent company Digital Currency Group, filed for its ether futures ETF during the same month.
While both filings were originally subject to a decision deadline of November 17, the SEC has announced an extension of this timeframe, as revealed in filings on Wednesday.
These delays occur amid heightened expectations for the approval of a spot bitcoin ETF by the federal regulator. Historically, the SEC has rejected all attempts to list such a product for the broader investing public.
In 2023 alone, over a dozen companies have sought approval to launch spot bitcoin ETFs, with several others now seeking similar products tied to ether, the second-largest cryptocurrency by market capitalization.
The SEC has not yet provided insight into its potential ruling on the latest wave of applicants. Previous rejections raised concerns about the susceptibility of bitcoin to market manipulation and a lack of surveillance-sharing agreements, among other issues.
Applicants contend that these concerns have either been adequately addressed or are no longer relevant, particularly following the approval of bitcoin futures ETFs – an argument supported by an appeals court earlier this year. Nevertheless, the SEC has deferred final decisions on these applications.
Despite today’s delays, the price of bitcoin (BTC) does not appear to be significantly impacted, as it has risen by over 5% this afternoon, reaching $37,500.
