SEC Postpones Vital Decision on First-Ever Bitcoin ETF Approval
- The US Securities and Exchange Commission (SEC) has deferred the decision on Hashdex’s Bitcoin ETF approval until 2024.
- This delay follows a pattern seen with other ETF hopefuls, signaling the SEC’s cautious approach to cryptocurrency investment products.
The US Securities and Exchange Commission (SEC) has once again postponed its decision regarding the approval of the first US exchange-traded fund (ETF) (Bitcoin ETF approval) directly investing in Bitcoin.
Despite mounting speculation that approval might be imminent, the SEC deferred a decision on Hashdex’s application to convert its existing Bitcoin futures ETF into a spot fund.
The regulatory body had a deadline of November 17 to respond to the application filed by the crypto asset manager back in September. However, according to a document released on Wednesday, the SEC has extended the decision-making timeline to 2024. This delay mirrors the SEC’s approach to several other ETF applications, reflecting a cautious stance on cryptocurrency-related financial products.
Grayscale’s Ether Futures ETF Stalled Again
James Seyffart, an ETF analyst, commented on the SEC’s decision, stating, “It’s really not that surprising; the SEC goes early on decisions like this fairly frequently.”
In addition to Hashdex’s case, the SEC also deferred action on Grayscale’s initiative to launch a new Ether futures ETF. The regulatory uncertainty surrounding these ETFs has become a recurring theme in the crypto space, as market participants eagerly await regulatory clarity and the green light for such investment vehicles.
The postponement underscores the SEC’s meticulous approach to evaluating the risks and regulatory implications associated with cryptocurrency-based financial instruments. As the crypto industry continues to evolve, market participants and enthusiasts will be closely monitoring future developments in the SEC’s stance on these groundbreaking financial products.
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