SEC Delays Hashdex’s Spot Bitcoin-Ethereum ETF Decision

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on whether to approve the Hashdex Nasdaq Crypto Index US ETF. The proposed exchange-traded fund (ETF) aims to include both Bitcoin (BTC) and Ethereum (ETH).

SEC Needs More Time for Review

The SEC announced in a filing that it is extending the initial 45-day review period for the Hashdex ETF proposal. The new deadline is September 30, by which time the SEC must decide to approve, disapprove, or start a process to determine whether to disapprove the rule change.

Nasdaq submitted the proposal via Form 19b-4 to the SEC on June 17, seeking permission to list and trade shares of the Hashdex Nasdaq Crypto Index US ETF on its exchange. If approved, investors would be able to buy and sell shares of this ETF, which will hold both Bitcoin and Ethereum.

The SEC stated it needs more time to thoroughly review the proposal and address any issues.

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the SEC said.

Hashdex Seeks SEC Approval for ETF Updates

Hashdex submitted its registration statement, also known as an S-1, to the SEC on July 24. The ETF, called the Hashdex Nasdaq Crypto Index US ETF, would initially hold Bitcoin and Ethereum but could include more assets in the future, depending on regulatory changes.

In its S-1 filing, Hashdex explained that if any new cryptocurrencies (other than Bitcoin and Ethereum) become important enough to be added to their index, they will adjust how they manage the ETF. At first, they would continue holding only Bitcoin and Ethereum, but in the same amounts as before. 

If Hashdex later decides to add the new cryptocurrencies to the ETF, they would need to get approval from the SEC. To do this, the exchange where the ETF is traded would need to submit a special request under a rule called Rule 19b-4 of the Exchange Act.