SEC Postpones Decisions On Hashdex Spot Bitcoin ETF And Grayscale Ether Futures ETF Applications

Updated: 16 November 2023

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The US Securities and Exchange Commission (SEC) has postponed its decision on Hashdex’s spot Bitcoin exchange-traded fund (ETF) and Grayscale’s Ethereum futures ETF filings.

The securities regulator had an initial deadline of November 17 to make a decision on the two applications.

It has now added a 45-day window, with the next decision deadline for both set for January 1, 2024.

SEC Delays Hashdex’s “Unique” Spot Bitcoin ETF

The Hashdex spot BTC ETF application was delayed despite the asset manager taking a unique approach.

Breaking: NYSE files a modification to another ETF, to be now called the Hashdex Bitcoin ETF

Their application is unique in that it will not use Coinbase, they will use prices and acquire spot BTC via CME.

It will hold a mixture of spot & futures positions
Hard to reject imo pic.twitter.com/K1ABKKZX5o

— Alistair Milne (@alistairmilne) August 25, 2023

Unlike other recent filings, Hashdex will acquire spot BTC from physical exchanges on the Chicago Mercantile Exchange (CME). This makes the ETF solely reliant on CME pricing.

The 19b-4 filing says doing this will “avoid any exposure to potential manipulation from unregulated exchanges.”

The SEC said it needs “sufficient time to consider the proposed rule change and the issues raised therein.”

Analysts Say Grayscale’s ETH Futures ETF Is A “Trojan Horse”

While reacting to the SEC’s delayed decision on Grayscale’s ETH futures ETF, Bloomberg ETF analyst, James Seyffart said that Grayscale was “playing chess” with the commission.

I was initially unsure why they would even file for this. But my thoughts have evolved over the last few weeks and they are basically this:
Grayscale is playing Chess, not checkers here. They're likely hoping to force the SEC into issuing a 19b-4 decision on an ETH futures ETF.…

— James Seyffart (@JSeyff) November 15, 2023

He noted that if the SEC were to approve Grayscale’s Ethereum ETF, it would allow the digital asset manager to “point out the SEC’s hypocrisy on deciding between futures and spot.”

“I doubt Grayscale even intends to launch this,” Seyffart said. “It’s nothing but a trojan horse to get a 19b-4 order from the SEC. And watch them try to either approve and argue why this is different from spot.”