SEC Extends Decision-Making Period on Bitcoin and Ethereum Futures ETF Conversions
The Securities and Exchange Commission (SEC) has extended its decision-making timeline regarding the potential conversion of Bitcoin and Ethereum futures ETFs to spot ETFs, as indicated in separate filings on Wednesday. In response to the Hashdex Bitcoin futures ETF application, proposing the transformation of its New York Stock Exchange-listed ETF into a spot product, the SEC stated it would take an additional 45 days to reach a decision by January 1, 2024. The SEC justified the extended period, citing the need for sufficient time to evaluate the proposed rule change and related issues.
Hashdex's unique proposal involves holding a combination of "Bitcoin Futures Contracts, Spot Bitcoin, and cash" to mitigate market manipulation risks, setting it apart from conventional approaches. Meanwhile, major players such as Fidelity and BlackRock are also pursuing SEC approval for their spot Bitcoin ETFs, contributing to positive market sentiment in the crypto space.
In a parallel filing, the SEC utilized similar language to explain its decision to delay a ruling on a rule change associated with Grayscale's Ethereum futures ETF proposal. The SEC anticipates reaching a decision on this matter by the beginning of the new year. Grayscale's ETF filing followed the SEC's clearance for the first Ethereum futures ETFs, with VanEck and ProShares also introducing Ethereum futures-based ETFs to the market.