The US Securities and Exchange Commission (SEC) has announced the postponement of the approval decision for a dual-spot cryptocurrency ETF from Brazilian asset manager Hashdex. This development comes in view of a critical deadline in the approval process of the proposed investment fund.
SEC asks for time to review Hashdex mixed cryptocurrency ETF
On June 17, the Nasdaq Stock Exchange Market filed an application with the SEC, seeking a rule change that would allow the listing of a combined bitcoin and ethereum ETF known as the Hashdex Nasdaq crypto Index US ETF. Bitcoinist reported that this dual ETF, which represents the first of its kind, will be comprised of bitcoin and ethereum in a ratio of 70.54% to 29.46% and the remaining percentage will contain cash for operating costs.
However, the Hashdex mixed cryptocurrency ETF is also subject to the addition of other assets that meet specific criteria and a qualifying status. Meanwhile, the US exchange Coinbase and the BitGo cryptocurrency trust are designated custodians of the assets invested in this fund.
Pursuant to the Securities Exchange Act, the SEC is mandated to issue a response on a commodity-based trust stock application 45 days after filing. However, the Act also allows the Commission to extend this investigation period to 90 days if necessary, but such a decision must be made within the initial standard 45 days.
According to a Brief report of August 9The SEC decided to delay its response to the Hashdex Nasdaq crypto Index ETF. Although there were no explicit reasons for this decision, the Commission stated that it needed time to consider all aspects of the proposed investment fund. Following this decision, the SEC is expected to announce its approval or disapproval verdict by September 30, as opposed to the previous deadline of August 16.
CBOE resubmits bitcoin ETF application
In other news, the Chicago Board Options Exchange (CBOE) has resubmitted its bitcoin ETF options application to the SEC.
Commenting on this development, Bloomberg analyst James Seyffart x.com/JSeyff/status/1821691941257433234″ target=”_blank” rel=”noopener nofollow”>fixed that the new application submitted was 29 pages longer than the previous one, indicating that the exchange may have been in discussions with the Commission. However, he notes that time is still very much a factor at play, as a late response from the SEC could shift the approval deadline to April 25. Although, if both parties are already in communication, that may not be the case.
A bitcoin ETF option refers to financial derivatives that give investors the right, but not the obligation, to buy or sell shares of a bitcoin ETF at a predetermined price before a specific expiration date. bitcoin ETF options are used to protect against price declines and bet on price movements.
Featured image from Dreamstime, chart from Tradingview
