Strategic Move Set to Corner SEC in Bitcoin ETF Race

  • Hashdex, a cryptocurrency asset management firm, has submitted a new application for a Bitcoin ETF, employing a unique strategy that challenges the U.S. Securities and Exchange Commission (SEC).
  • Unlike other applications, Hashdex’s submission does not include a surveillance-sharing agreement with Coinbase, and instead of purchasing Bitcoin directly with cash from exchanges, the company will acquire it via the futures exchange CME.
  • Hashdex’s strategy aims to invalidate the SEC’s frequent argument of market manipulation when rejecting spot ETFs by aligning its spot ETF with the CME.

In a strategic move, Hashdex, a crypto asset management firm, has lodged a new Bitcoin ETF application that puts the U.S. Securities and Exchange Commission (SEC) in a tight spot. The company’s unique approach involves acquiring Bitcoin through the CME futures exchange rather than buying it directly with cash from exchanges, and it does not involve a surveillance-sharing agreement with Coinbase, unlike other applications.

A New Approach to Bitcoin ETFs

Hashdex’s strategy revolves around the “Exchange for Physical” (EFP) product on the CME. This process allows for the exchange of a futures contract for a physical asset. For instance, an investor who has previously purchased a futures contract for a certain amount of gold and does not wish to continue the contract upon maturity can execute an EFP transaction, exchanging the futures contract for physical gold. This way, the holder of the futures contract can terminate it and receive physical gold in return.

Targeting the SEC’s Market Manipulation Argument

The SEC has previously approved Bitcoin ETFs based on futures contracts on the CME. The commission also acknowledged that Bitcoin contracts on the CME are part of a regulated market. By associating its spot ETF with the CME, Hashdex aims to nullify the SEC’s frequent argument of market manipulation when rejecting spot ETFs.

Cornering the SEC from Another Angle

Bloomberg ETF analyst James Seyffart expressed that this application puts the SEC and its chairman, Gary Gensler, in a corner from another angle. ETF expert Nate Geraci also praised Hashdex and the NYSE for their excellent move. Tweet Link

SEC Has 240 Days to Make a Decision

If approved, the ETF will be traded on the New York Stock Exchange (NYSE). The SEC has a 240-day period to evaluate the ETF. The commission must make a final decision on the application at the end of this period.

Conclusion

Hashdex’s innovative strategy presents a new challenge to the SEC’s approach to Bitcoin ETFs. By aligning its spot ETF with the CME, the company aims to counter the SEC’s frequent market manipulation argument. This move has been praised by industry experts and puts the SEC in a position where it must carefully consider its decision.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

Bitcoin, Ethereum Slide With Stocks: Did the Market Break?

Discover the key factors driving the current market downturn, and their impact on Bitcoin, Ethereum, and other cryptocurrencies. Explore expert insights and potential future scenarios.

Bitcoin (BTC) is “Super Cheap” at $69k: Adam Back Rejects Post-Halving Crash Predictions

Legendary cypherpunk and Blockstream CEO Adam Back offers a contrarian view on Bitcoin's price action. Get expert insights on market sentiment, halving predictions, and BTC's long-term value potential.

Ethereum’s Pectra Upgrade: Enhanced UX, Wallet Innovation, and Community Debate (ETH)

The Ethereum Pectora upgrade promises a revolution in wallet functionality. Get insights on the debate surrounding its groundbreaking features and their potential impact on the Ethereum ecosystem.

Bitcoin (BTC) Price Retreats Amid Gold’s Record Surge; Analysts Eye Re-accumulation Phase

Find out why Bitcoin's momentum stalled as gold soared to new highs. Explore expert insights on BTC's price trajectory and the significance of re-accumulation patterns.

Litecoin (LTC) Surges in Popularity, Surpassing 5 Million Long-Term Holders

Discover the reasons behind Litecoin's surge in popularity and why investors are increasingly choosing LTC for long-term holdings. Get insights into the future potential of this established cryptocurrency.
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Bitcoin BTC’s Path to Recovery: Will the Upcoming Halving Trigger a Rise Above $71,400?

This analysis delves into Bitcoin's immediate future as it approaches a critical halving event, exploring potential movements above key resistance levels.

Bitcoin (BTC) Surges Past $70k: Could $75k be the Next Target?

Bitcoin (BTC) has made a decisive move above $70,000, indicating bullish momentum. This article delves into the factors driving the surge, technical analysis, and what investors should watch for in the near term.

NEO Launches Uptrend to $25! Current NEO Analysis

Analyzed NEO's 3-hour chart, showing upward trend post $14.80 resistance breakthrough, eyeing $15.18 resistance; potential long positions suggested at $14.636 - $14.448 support range with a stop loss at $13.90, as NEO aims for $25 target amidst over 5% gains.

Is Litecoin Ready to Launch its Rise to $140? Current LTC Analysis

When examining LTC's technical chart, a downward trend is observed in recent days. The nearest support is at the level of 91.86 dollars. The support range between 97.61$ and 99.07$ on the 4-hour chart is significant. For long positions, the support range of 92.41$ - 91.07$ can be expected.

Bitcoin (BTC) Surges Past $70k: Could a Rally to $75k be Next?

Get expert analysis on Bitcoin's breakout above $70,000. Discover what's driving the price action, key levels to watch, and potential scenarios for BTC's near-term future.
Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
spot_imgspot_imgspot_imgspot_img

Bitcoin, Ethereum Slide With Stocks: Did the Market Break?

Discover the key factors driving the current market downturn, and their impact on Bitcoin, Ethereum, and other cryptocurrencies. Explore expert insights and potential future scenarios.

Bitcoin (BTC) is “Super Cheap” at $69k: Adam Back Rejects Post-Halving Crash Predictions

Legendary cypherpunk and Blockstream CEO Adam Back offers a contrarian view on Bitcoin's price action. Get expert insights on market sentiment, halving predictions, and BTC's long-term value potential.

Ethereum’s Pectra Upgrade: Enhanced UX, Wallet Innovation, and Community Debate (ETH)

The Ethereum Pectora upgrade promises a revolution in wallet functionality. Get insights on the debate surrounding its groundbreaking features and their potential impact on the Ethereum ecosystem.