Asset manager Hashdex recently held a meeting with the U.S. Securities and Exchange Commission to address the regulator’s concerns about its application to allow the Hashdex bitcoin Futures exchange-traded fund (ETF) to hold bitcoin in cash, it told Cointelegraph a source familiar with the matter.
According to a memorandum released Per the Division of Commercial Markets, the meeting took place on October 13 and was attended by six SEC officials and representatives from Hashdex, NYSE Arca, Tidal Financial Group, and the law firm K&L Gates.
At the meeting, Hashdex presented its mechanism that allows trading and holding bitcoin (btc) in cash on the Chicago Mercantile Exchange (CME) ETF, which is regulated by the Commodity Futures Trading Commission.
Hashdex’s introduction differs from other bitcoin spot applications because it does not have a shared surveillance agreement with crypto exchange Coinbase. Instead, Hashdex proposes acquiring btc spot from physical exchanges within the CME market, making it completely dependent on CME prices for transactions. according to an SEC filing made by NYSE Arca in late August.
A presentation shared with SEC officials during this month’s meeting shows that the strategy also relies on the commission’s Teucrium Order, which states that the bitcoin futures market is sufficiently developed to support financial products that seek exposure to btc. .
As a next step, the SEC may request more information before the first application deadline on Nov. 17, according to the person with knowledge of the matter.
Hashdex claims to have more than $380 million in assets under management and 14 exchange-traded products (ETPs) in seven countries.
The SEC approved the Hashdex bitcoin futures ETF in April 2022. The product has been listed on NYSE Arca since September last year. If the rule change is approved, the ETF will also be able to hold bitcoin in spot form.
Several major asset managers are rushing to list the first bitcoin ETF in the United States. BlackRock’s ETF proposal was recently listed with the Depository Trust & Clearing Corporation (DTCC), suggesting approval could be on the way, according to Bloomberg ETF analyst Eric Balchunas.
“The current consensus view is that the SEC will approve all spot ETFs within three months,” the source said.
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