SEC Delays Decision on Hashdex’s Bitcoin and Ether ETF

The U.S. Securities and Exchange Commission (SEC) has postponed its decision regarding crypto asset management firm Hashdex’s exchange-traded fund (ETF) that aims to directly hold spot Bitcoin and Ether.

In a filing made public on Friday, the SEC announced it would extend its timeline for approving, disapproving, or instituting proceedings on the proposed ETF until September 30, 2024. The agency stated,

“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.”

Hashdex submitted its registration statement, known as an S-1, to the SEC on July 24. The proposed fund, named Hashdex Nasdaq Crypto Index US ETF, is designed to hold Bitcoin and Ether but has the potential to include additional assets as the regulatory framework evolves.

Hashdex mentioned in its S-1 filing,

“If any crypto asset other than bitcoin and ether becomes eligible for inclusion in the Index, the Sponsor will transition to a sample replication strategy, with only bitcoin and ether in the same proportions determined by the Index.”
It further clarified that should the Trust want to revisit a full replication strategy, it would have to file a rule change request under Rule 19b-4 of the Exchange Act with the SEC for approval to amend its listing rules.

The Hashdex Nasdaq Crypto Index US ETF is set to be listed and traded on Nasdaq and is based on the Nasdaq Crypto Index US methodology. Nasdaq had previously submitted a Form 19b-4 for the fund in June.