SEC Extends Decision Timeline for HashDex Bitcoin Spot ETF Conversion and Grayscale Ether Futures Application

BTC Spot ETF Decision

”Bitcoin Spot ETF Decision” The U.S. Securities and Exchange Commission (SEC) is postponing its decision on Hashdex’s application to transform its existing bitcoin futures exchange-traded fund (ETF) into a spot vehicle. Simultaneously, the SEC is delaying action on Grayscale’s bid to introduce a new futures-based ether ETF. Hashdex initiated the filing to convert its bitcoin futures ETF into a spot bitcoin ETF in September, while Grayscale, a subsidiary of CoinDesk’s parent company, Digital Currency Group, filed for its ether futures ETF in the same month. Both applications faced initial deadlines of Nov. 17 for a decision, but the SEC has extended this timeframe, as indicated in Wednesday’s filings.

The delays occur amidst heightened anticipation for the approval of a spot bitcoin ETF by the federal regulator, which has thus far rejected every attempt to list such a product for the general investing public. In 2023 alone, over a dozen companies have submitted filings to launch spot bitcoin ETFs, with several others applying for similar products tied to ether, the second-largest cryptocurrency by market capitalization. The regulator has yet to reveal how it may ultimately decide on the latest round of applicants. Past rejections raised concerns about Bitcoin’s susceptibility to market manipulation and a lack of surveillance-sharing agreements, among other issues. Applicants now assert that these concerns have been addressed or are no longer relevant after the approval of bitcoin futures ETFs, a viewpoint echoed by an appeals court earlier this year. The SEC has, however, deferred final decisions on these applications.

Despite today’s delays, there appears to be no significant impact on the price of Bitcoin (BTC), which has surged by over 5% this afternoon to $37,500.

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