The U.S. Securities and Exchange Commission (SEC) has announced that it has postponed its decision to approve Brazilian asset manager Hashdex’s dual cryptocurrency exchange-traded fund. The development comes in light of a critical deadline in the approval process for the proposed investment fund.
SEC Calls for Time to Review Hashdex Mixed Crypto Spot ETF
On June 17, Nasdaq filed a request with the Securities and Exchange Commission, seeking to change the rule that would allow the listing of a Bitcoin and Ethereum exchange-traded fund known as the Hashdex Nasdaq Crypto Index US ETF. The first-of-its-kind dual fund will consist of 70.54% to 29.46% Bitcoin to Ethereum, with the remainder being cash for operating costs, Bitcoinist reported.
However, the Hashdex crypto hybrid fund is also subject to the addition of other assets that meet certain eligibility criteria and conditions. Meanwhile, US exchange Coinbase and BitGo crypto fund have been appointed as custodians of the assets invested in this fund.
Under the Securities Exchange Act, the SEC is required to issue a response to a commodity-based trust application 45 days after the application is filed. However, the Act also allows the SEC to extend this review period to 90 days if necessary, but such a decision must be made within the initial standard 45 days.
According to August 9 BriefThe US Securities and Exchange Commission has decided to postpone its response to the Hashdex Nasdaq Crypto Index ETF. While there are no clear reasons for the decision, the agency said it needs time to consider all aspects of the proposed investment fund. Under the ruling, the SEC is now expected to announce its approval or disapproval ruling by September 30, as opposed to the previous deadline of August 16.
CBOE Resubmits Bitcoin ETF Application
In other news, the Chicago Board of Options Exchange (CBOE) has resubmitted its application for a Bitcoin options ETF to the Securities and Exchange Commission.
Commenting on this development, Bloomberg analyst James Seifart said: Stated The newly submitted application was 29 pages longer than the previous one, suggesting that the exchange may have been in talks with the commission. However, he points out that the time factor still plays a big role, as a late response from the SEC could push the approval deadline to April 25. However, if the two parties are already in contact, that may not be the case.
A Bitcoin ETF option refers to a financial derivative that gives investors the right, but not the obligation, to buy or sell shares of a Bitcoin ETF at a predetermined price before a specified expiration date. Bitcoin ETF options are used to hedge against price declines and bet on price movements.
Featured image from Dreamstime, chart from Tradingview