- Hashdex has met with the U.S. Securities and Exchange Commission (SEC) to address concerns related to a Bitcoin Exchange Traded Fund (ETF) focused on spot Bitcoin.
- Hashdex’s approach differs significantly from other applications as it doesn’t rely on the anticipated surveillance-sharing agreement with Coinbase for spot Bitcoin approval.
- The SEC can request information on the application before the initial deadline, which, as explained by a knowledgeable source, is on November 17.
Asset management firm Hashdex addressed concerns about spot Bitcoin ETFs in its recent meeting with the SEC: What topics were touched upon in the meeting?
Hashdex and SEC Discuss Spot Bitcoin ETFs
Asset management firm Hashdex has discussed concerns about spot Bitcoin ETFs with the SEC during their recent meeting. Participants in the meeting included six SEC officials and representatives, as well as legal experts from NYSE Arca, Tidal Financial Group, and K&L Gates.
During the meeting, Hashdex presented information about an innovative mechanism aimed at facilitating the trading and storage of spot Bitcoin within the ETF. This mechanism intends to execute transactions through the Chicago Mercantile Exchange (CME), subject to regulatory oversight from the Commodity Futures Trading Commission, which would be fully reliant on CME pricing for transactions. This unique strategy, detailed in an SEC filing from NYSE Arca in late August, sets Hashdex apart from other applications since it doesn’t rely on the anticipated surveillance-sharing agreement with Coinbase.
A presentation shared with SEC officials during this month’s meeting highlighted that the strategy underscores the maturity and resilience of the Bitcoin futures market, which forms a robust foundation for financial products aiming to offer exposure to Bitcoin.
During this process, the SEC can request information about the application before the initial deadline. As a knowledgeable source mentioned, the initial deadline for the application is November 17. Hashdex has an impressive track record with over 380 million dollars in asset management portfolios, and it operates exchange-traded products (ETPs) listed on 14 stock exchanges in 14 countries.
Hashdex had previously received approval for a Bitcoin ETF
In April 2022, the SEC approved Hashdex’s Bitcoin Futures ETF, which has been actively traded on NYSE Arca since September of last year. In addition to the approved rule change, the ETF is designed to adopt spot Bitcoin as part of its investment strategy.
A significant competition has emerged among major asset management companies in the United States to introduce the country’s first spot Bitcoin ETF. BlackRock’s ETF proposal being listed with the Depository Trust & Clearing Corporation (DTCC) is seen as a possible path to approval, according to Bloomberg ETF analyst Eric Balchunas. This development has led to a widespread belief, confirmed by an informed source, that the SEC is inclined to approve all spot ETFs within approximately three months.
