- The regulator had to make a decision on both filings by Nov. 17
- The SEC has rejected every spot Bitcoin ETF application so far
NYSE Arca filed a proposed rule change to list and trade shares of the Hashdex Bitcoin Futures ETF under NYSE Arca Rule 8.500-E with the Securities and Exchange Commission (SEC) in September, but it has yet to receive a response, CoinDesk wrote, citing an official filing. The proposed rule change was published for comment in the Federal Register on October 3.
With that, Hashdex is still waiting to convert its existing Bitcoin futures exchange-traded fund (ETF) into a spot trading platform. The SEC has also postponed action on Grayscale’s attempt to start a new futures-based ether ETF. Grayscale filed for its ether futures ETF in September as well.
SEC is extending tomorrow’s deadline
The regulator had to make a decision on both filings by Nov. 17 initially. On Nov. 15, they announced they were extending the deadline.
In October, Grayscale filed a registration statement on Form S-3 to register shares of its Bitcoin Trust under the Securities Act of 1933. The SEC rejected its application to transform the trust into an ETF a few months earlier, over which Grayscale is suing.
If not Bitcoin, then Ethereum
The delays come against the backdrop of heightened anticipation of regulatory approval of a spot Bitcoin ETF. However, this may not materialize soon enough, or at all. The SEC has rejected every application so far. Numerous companies filed to launch such products this year. A few companies applied for ether futures ETFs.
Regulatory arguments
The regulator has motivated its rejections with the argument that Bitcoin is vulnerable to market manipulation and no monitoring agreements exist. Applicants beg to differ, claiming such concerns are irrelevant or have been addressed.
Another Bitcoin ETF applicant, Franklin Templeton, also faced the Nov. 17 deadline. The remaining applicants will need to wait until next year for a decision.
