SEC Postpones Verdict on Groundbreaking Bitcoin-Ethereum ETF

The US Securities and Exchange Commission (SEC) has decided to delay its ruling on a dual cryptocurrency spot ETF submitted by Brazilian firm Hashdex.

This extension affects the timeline for the ETF, which seeks to combine Bitcoin and Ethereum investments.

The Nasdaq Stock Exchange Market applied for a rule change with the SEC on June 17 to list the Hashdex Nasdaq Crypto Index US ETF. This innovative ETF plans to allocate 70.54% to Bitcoin and 29.46% to Ethereum, with a small portion held in cash for operational expenses. Coinbase and BitGo have been named as custodians for the fund.

According to the Securities Exchange Act, the SEC must respond to such applications within 45 days but can extend this period to 90 days if needed. On August 9, the SEC announced it would need more time to evaluate the Hashdex ETF, moving the decision date to September 30 from the initial August 16 deadline.

In another development, the Chicago Board Options Exchange (CBOE) has resubmitted its application for Bitcoin ETF options, indicating ongoing discussions with the SEC. The revised application is significantly more detailed, suggesting progress in their talks. A Bitcoin ETF option allows investors to hedge or speculate on Bitcoin ETF prices within a set timeframe.

These moves highlight the SEC’s cautious approach to approving new cryptocurrency investment products, reflecting the complexity and regulatory scrutiny involved.