SEC Pushes Deadline for Hashdex Spot BTC-ETH ETF Review

The US Securities and Exchange Commission (SEC) has extended its review period for Hashdex’s proposal for a combined spot Bitcoin and Ethereum exchange-traded fund (ETF).

If approved, the Hashdex Nasdaq Crypto Index US ETF would provide investors with direct exposure to Bitcoin (BTC) and Ethereum (ETH).

SEC Deliberates on Hashdex Combined Spot Crypto ETF as Industry Awaits Final Verdict

In an official notice on August 9, the SEC emphasized the need for “sufficient time to consider the proposed rule change and the issues raised therein.” The agency pushed the decision deadline to September 30, 2024.

BeInCrypto reported that Hashdex filed its 19b-4 form in June. The asset manager then submitted its S-1 form to the SEC in late July.

Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach

This ETF aims to offer a passive investment strategy that tracks the Nasdaq Crypto US Settlement Price Index (NCIUSS). The fund’s assets will be composed entirely of Bitcoin and Ethereum, with cash reserves only for operational expenses. Coinbase and BitGo will handle custodial services for the digital assets, ensuring secure storage.

Hashdex’s novel approach has drawn notable attention from industry experts. Previously, James Seyffart, an ETF analyst at Bloomberg Intelligence, praised the ETF’s market cap-weighted structure. Moreover, he believes this investment product is a sensible approach for investors seeking diversified exposure to digital assets.

This development comes after several exchanges and asset managers moved to include options trading and listing on their spot Bitcoin and Ethereum ETFs. Earlier this week, BlackRock submitted a filing for options trading on its spot Ethereum ETF to the SEC through Nasdaq. On the other hand, however, Seyffart noted that three exchanges have retracted their applications to list options for spot Bitcoin ETFs. 

“There’s definitely some movement on Bitcoin ETF options. CBOE just withdrew their application for options on spot Bitcoin ETFs. Which sounds like a bad thing at first… But at the same time, they just re-filed a brand new and updated application,” he noted.

Read more: How to Invest in Ethereum ETFs?

Despite the mixed progress, Eric Balchunas, another ETF analyst at Bloomberg Intelligence, believes these indicators are promising. He argues that similar to how comments from the SEC were viewed as positive for ETF approval chances, engagement in this context should also be seen as a positive sign.

“Because if they were just gonna deny it outright, why bother engaging at all?” Balchunas opined.