SEC Delays Decision on HashDex Bitcoin Spot ETF Application, Grayscale Ether Futures Filing

CoinDeskPolicyPublished on 2023-11-14Last updated on 2023-11-15

Abstract

Franklin Templeton also has an outstanding bitcoin ETF application with a Nov. 17 decision deadline.

The U.S. Securities and Exchange Commission (SEC) is delaying a decision on an application by Hashdex to convert its existing bitcoin futures exchange-traded fund (ETF) into a spot vehicle. The agency has also delayed action on Grayscale's attempt to launch a new futures-based ether ETF.

Hashdex filed to convert its bitcoin futures ETF into a spot bitcoin ETF in September. Grayscale (a subsidiary of CoinDesk parent Digital Currency Group) filed for its ether futures ETF that same month. Both filings faced initial deadlines of Nov. 17 for a decision, but the SEC today said it was extending this window, according to a pair of Wednesday filings.

14.6K

The delays come amid heightened anticipation of a spot bitcoin ETF approval by the federal regulator, which has so far rejected every attempt to list such a product for the general investing public. Over a dozen companies have filed to launch spot bitcoin ETFs in 2023, with several others now applying for similar products exposed to ether, the second-largest cryptocurrency by market capitalization.

A D V E R T I S E M E N T

The regulator has yet to indicate how it might ultimately rule on the latest slate of applicants. Previous rejections raised concerns about the susceptibility of bitcoin to market manipulation and a lack of surveillance-sharing agreements, among other concerns. Applicants now say these concerns have been addressed or are no longer relevant after the approval of bitcoin futures ETFs, a view an appeals court echoed earlier this year. The SEC has so far delayed making final decisions on these applications.

Today's delays don't seem to be putting a dent in the price of bitcoin (BTC), which has moved higher by more than 5% this afternoon to $37,500.

STORY CONTINUES BELOW

Recommended for you:

Franklin Templeton, another bitcoin ETF applicant, also faces a Nov. 17 deadline, while other companies will not see any further decisions until 2024.

Edited by Stephen Alpher.

Strategy’s Bitcoin gamble turns sour: $14B loss raises fears of a deeper BTC fall

Bitcoin faces increasing bearish pressure, with potential for its first three consecutive negative quarters since 2022 following a 22% Q1 drop and a 12.2% Q2 decline. A negative Q3 would signal a shift toward a structural downtrend. Concerns center on Strategy's digital asset treasury (STRC), which has fallen nearly 25% this cycle. Strategy holds an estimated $14 billion in unrealized Bitcoin losses, raising doubts about its ability to sustain STRC's 11.5% dividend yield ($1.2B annually) and continue future Bitcoin purchases. This situation heightens the risk of deeper market capitulation, potentially pushing BTC lower.

ambcrypto50m ago

Strategy’s Bitcoin gamble turns sour: $14B loss raises fears of a deeper BTC fall

ambcrypto50m ago

Solana Spot ETF Filings In Focus While SOL Trades Near Key Support

Solana traders are monitoring both a key ETF filing and technical price levels. Morgan Stanley amended its S-1/A filing for a proposed spot Solana Trust (ticker MSOL), detailing a 0.14% annual fee and plans for native staking through providers like Figment. Crucially, the filing indicates 95% of staking rewards would be passed to shareholders, a significant structural point for a potential ETF. On the market side, SOL recently traded between $67.21 and $70.46, with immediate resistance near $74 and key support around $60. The article notes that while the filing provides a concrete document for analysis, SOL's short-term price is influenced by broader market factors. Next, watch for regulatory responses and whether SOL can break above $74 or if the $60 support level will hold.

bitcoinist1h ago

Solana Spot ETF Filings In Focus While SOL Trades Near Key Support

bitcoinist1h ago

Kraken Sets Its Sights on Aave: Why is CeFi Starting to 'Buy the Dip' in Core DeFi Assets?

Recent market rumors suggest Kraken is planning a strategic investment in Aave, sparking widespread interest. Although Aave's co-founder clarified some inaccurate details in the reports, this event highlights a significant trend: centralized exchanges are accelerating their entry into the core areas of on-chain finance. Kraken's interest in Aave reflects its strategic expansion beyond simple trading into more profitable, higher-barrier financial services like DeFi asset management. Aave, a leading DeFi lending protocol, offers a mature lending model, deep liquidity, and a growing ecosystem, making it a key gateway to future on-chain finance. Despite a major security incident in April that caused significant withdrawals, Aave's core architecture, governance, and market trust remained intact. The protocol's strong fundamentals are underscored by its $134 million in annual revenue, suggesting its valuation may be undervalued. Aave is also designing a new tokenomics model (Aavenomics 3.0) featuring an automated token buyback mechanism to better capture value for token holders, signaling DeFi's evolution towards sustainable value models. Ultimately, this potential move signals accelerated convergence between CeFi and DeFi. Kraken's target is not just an asset but a strategic position in the future of on-chain financial infrastructure, while Aave aims to prove DeFi can evolve into a cash-flow-generating, global financial system.

marsbit1h ago

Kraken Sets Its Sights on Aave: Why is CeFi Starting to 'Buy the Dip' in Core DeFi Assets?

marsbit1h ago

Corporate Treasury SBET Resumes Ethereum Accumulation With 5,000 ETH Purchase

SharpLink, a publicly traded company formerly known as SharpLink Gaming, has reportedly resumed its accumulation of Ethereum (ETH) after an eight-month pause. According to on-chain data and media reports, the company acquired 5,000 ETH, worth approximately $7.85 million, through institutional broker FalconX while ETH was trading near $1,537. If accurate, this purchase would bring SharpLink's total holdings to roughly 876,285 ETH. The story is attributed to on-chain tracking and reporting, not a formal corporate statement, so it should be framed as a reported transaction. This move highlights the growing trend of corporate treasuries diversifying into Ethereum, viewing it not just as a reserve asset like Bitcoin but also for its utility in staking, DeFi, and tokenized finance. The use of a prime broker like FalconX underscores the role of institutional infrastructure for large corporate transactions. Key points to watch include whether SharpLink officially confirms the purchase and if other public companies follow suit by buying ETH during market downturns, potentially strengthening its narrative as a corporate reserve asset. Readers are reminded to treat this as part of broader market dynamics, which include macro factors, regulation, and on-chain flows, rather than an isolated price-moving event.

bitcoinist2h ago

Corporate Treasury SBET Resumes Ethereum Accumulation With 5,000 ETH Purchase

bitcoinist2h ago

Cardano’s multi-month slump sparks whale activity – ADA’s recovery coming?

Cardano (ADA) has extended its multi-month slump, dropping to new lows after another failed recovery attempt was rejected at the $0.1903 resistance level. Despite the persistent selling pressure and bearish technical structure, notable whale accumulation is occurring around current prices. This suggests some large investors are using the weakness to build positions. Furthermore, data from the derivatives market shows a contrasting sentiment, with long positions accounting for 75% of total exposure, indicating most leveraged traders are betting on a recovery. The market now stands at a crossroads. While whale buying and bullish futures positioning hint at potential support, ADA has yet to reclaim key lost levels. The coming sessions will be crucial in determining whether this accumulation can ultimately shift the prevailing downtrend.

ambcrypto2h ago

Cardano’s multi-month slump sparks whale activity – ADA’s recovery coming?