The U.S. Securities and Exchange Commission has postponed its decision on an exchange-traded fund (ETF) from Hashdex, a cryptocurrency asset management company that directly owns physical bitcoin and ether.
The agency said it would extend the time to decide whether to approve, deny or initiate proceedings until September 30, 2024. filing Posted on Friday.
The SEC stated, “The Commission believes it is appropriate to provide a longer period of time to take action on the proposed rule change so as to allow sufficient time to consider the proposed rule change and the issues raised therein.”
Hashdex submitted: Registration StatementThe document, also known as the S-1, was filed with the SEC on July 24. The fund, called Hashdex Nasdaq Crypto Index US ETF, holds bitcoin and ether, but could eventually hold more assets depending on how the regulatory environment evolves.
“If crypto assets other than Bitcoin and Ether become eligible for inclusion in the index, the Sponsor will transition to a sample replication strategy that includes only Bitcoin and Ether in the same proportions determined by the index,” the company said in its S-1. filing. “If the Trust were to change this and revert to a full replication strategy, the Exchange would need to file a rulemaking filing with the SEC pursuant to Rule 19b-4 of the Exchange Act to seek approval to amend the listing rules to allow the Trust to hold the new index constituents.”
The Hashdex Nasdaq Crypto Index US ETF is listed and traded on Nasdaq and is based on the Nasdaq Crypto Index US methodology. Nasdaq contaminated File Form 19b-4 for the fund in June.
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About the Author
Sarah is a reporter covering policy, regulation, and legal issues for The Block. Previously, Sarah was a securities regulation reporter at CQ Legal, where she first began reporting on cryptocurrencies. Sarah has also written for other financial publications, including The Bond Buyer and American Banker. She graduated from the University of Missouri with a degree in print and digital journalism. Sarah lives in Washington, D.C., and is an avid coffee drinker. You can follow her on Twitter @ForTheWynn.