SEC Postpones Ruling on Hashdex’s Request for Merged Spot Bitcoin and Ethereum ETF

Crypto investors are facing a delay in the approval process for the first exchange-traded fund (ETF) that would hold a diverse range of spot cryptocurrencies, such as Bitcoin (BTC) and Ether (ETH). The U.S. Securities and Exchange Commission (SEC) recently announced a postponement in the decision timeline regarding Hashdex’s application to list a combined ETF on the Nasdaq exchange.

The SEC extended the initial 45-day review period for the Hashdex ETF proposal, setting a new deadline of September 30 for a decision on whether to approve, reject, or initiate proceedings to consider disapproval of the proposed rule change. The regulatory filing released by the Securities and Exchange Commission on August 9 outlined the need for an extended evaluation period to thoroughly assess the proposed rule change and associated issues.

Hashdex submitted its registration statement to the SEC back in June for the Hashdex Nasdaq Crypto Index US ETF. If approved, this ETF would enable investors to trade shares linked to the value of Bitcoin and Ether, with potential inclusion of other altcoins based on regulatory developments.

The approval of Hashdex’s planned ETF would mark a significant milestone as the first diversified spot market crypto ETF to debut on Wall Street. Additionally, it would be the initial U.S. ETF to encompass altcoins beyond Ethereum, signaling a broader acceptance of digital assets in traditional financial markets.

The delay in the decision process comes amidst heightened anticipation within the cryptocurrency sphere, particularly following the SEC’s green light for spot BTC ETFs earlier this year and subsequent approval of Ethereum products within a span of six months. The industry is eagerly awaiting further approvals for crypto ETFs, including those related to Solana and XRP, as the demand for diversified investment options in the digital asset space continues to grow.

As the regulatory landscape evolves and investor interest in cryptocurrencies expands, the outcome of the Hashdex ETF proposal holds implications not only for the digital asset market but also for the broader financial sector’s acceptance of blockchain-based investment products. The delayed decision underscores the SEC’s cautious approach towards novel financial instruments and the need for comprehensive evaluation to ensure investor protection and market stability.