SEC Delays Hashdex Bitcoin Spot ETF Proposal, Grayscale Ethereum Futures ETF Proposal - BTC Price Hits New Highs
The U.S. Securities and Exchange Commission (SEC) has decided to further postpone the review timeline for the pending Bitcoin and Ethereum ETF proposals.
SEC Delays Hashdex Bitcoin Spot ETF Proposal, Grayscale Ethereum Futures ETF Proposal - BTC Price Hits New Highs. Image: CryptoSlate
In an early morning announcement on November 16, the U.S. Securities and Exchange Commission (SEC) has opted to delay decisions on both the Hashdex Bitcoin spot ETF and the Grayscale Ethereum futures ETF.
Both proposals were submitted to the SEC in September, with a deadline for SEC rulings set for November 17. Consequently, the SEC has chosen to extend its deliberation period. Interestingly, the SEC has not yet issued any statements regarding another Bitcoin spot ETF proposal due on November 17 from Franklin Templeton, though an announcement is expected this Friday.
UPDATE: There's the delay order for @hashdex 's application to convert $DEFI from a #bitcoin futures ETF to an ETF that holds both futures and spot.
— James Seyffart (@JSeyff) November 15, 2023
h/t @News_Of_Alpha https://t.co/AAHHFiMQBu pic.twitter.com/tWJrYvqOrf
UPDATE: @Grayscale Ethereum futures 19b-4 filing was delayed. Nothing remotely surprising about this. They've also filed separately to convert $ETHE into an ETF. pic.twitter.com/bBNOBiFN3U
— James Seyffart (@JSeyff) November 15, 2023
Additionally, the SEC's delay of Grayscale's Ethereum futures ETF is peculiar, given that the commission approved a series of ETH futures ETFs in October. The reasons for this delay may stem from ongoing legal disputes between the SEC and Grayscale, which prevailed in a lawsuit against the SEC in August. Grayscale subsequently applied to convert its Bitcoin and Ethereum trusts into spot ETFs.
As reported by Coin68, ETFs have been a catalyst driving growth in the cryptocurrency market since late October, endorsed by major Wall Street entities such as BlackRock. However, the SEC has yet to approve a Bitcoin spot ETF, arguing that the crypto market remains susceptible to manipulation and fraud, posing risks to investors. A prominent example includes individuals impersonating BlackRock to submit an XRP ETF application in Delaware.
The SEC's postponement of the Hashdex Bitcoin ETF proposal contradicts earlier forecasts by Bloomberg analysts, who anticipated a timeframe from November 9 to 17 for the SEC to approve the simultaneous review of 12 Bitcoin spot ETF proposals, citing indications that the SEC is preparing legal measures to approve a Bitcoin ETF.
SEC-reviewed Bitcoin spot ETF proposals. Image: Bloomberg (11/09/2023)
On the morning of November 16, Bitcoin not only failed to react negatively to this news but surged to $37,980 USD - marking the highest level of 2023 and the highest since May 2022, before the LUNA-UST crash occurred.
4-hour chart of BTC/USDT pair on Binance at 08:10 AM on November 16, 2023
Ethereum also experienced a similar recovery volatility, rising to $2,080 USD, although it has yet to reclaim the previous high of $2,136 USD.
4-hour chart of ETH/USDT pair on Binance at 08:10 AM on November 16, 2023
