The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Hashdex’s proposed exchange-traded fund (ETF) designed to hold spot bitcoin and ether. The agency has extended the timeline for evaluating the ETF application until September 30, 2024, according to a filing released on Friday.
In its statement, the SEC noted that the extension is necessary to allow sufficient time to consider the proposed rule change and address the issues raised. “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change,” the SEC said.
Hashdex initially filed its registration statement, or S-1, with the SEC on July 24. The proposed ETF, named the Hashdex Nasdaq Crypto Index US ETF, aims to directly own bitcoin and ether. However, the fund could potentially include additional assets depending on future regulatory developments.
The S-1 filing details that if other crypto assets become eligible for inclusion in the index, the fund will adopt a sample replication strategy, maintaining only bitcoin and ether in the proportions determined by the index. Any future changes to include new assets would require a rule filing under Rule 19b-4 of the Exchange Act to amend the listing rules and gain SEC approval.
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 filed a Form 19b-4 for the ETF in June, marking an important step in the fund’s regulatory process.
The SEC’s decision delay reflects ongoing caution as it evaluates the implications of approving crypto asset-based ETFs and navigates the evolving regulatory landscape surrounding digital assets.
