The application from HashDex to a ETF spot Bitcoin is still unresolved. The SEC maintains sa policy and differ its decision. The regulator also plays the watch on ETF future Ethereum from Grayscale.
The appetite of financial giants and investors for Bitcoin and Ethereum ETFs is boosting the prices of the two leading cryptocurrencies. In fact, BlackRock has just filed an application for a spot ETF on ether.
But to transform this craze into sustainable growth for both tokens, these projects still need to materialize. And the SEC continues to resist, both passively and actively. Passive, by deferring decisions on files submitted for its approval.
ETF spot BTC and ETF futures ETH same resistance
The stock exchange regulator has thus postponed its arbitration concerning the request of Hashdex. The company already has an exchange-traded fund on Bitcoin, but futures-based.
Hashdex wants to convert it into a spot ETF. Its application was filed with the SEC in September. In the same month, Grayscale applied for a future ETF, but backed by ETH.
Both funds had the same maturity date, November 17. Another similarity: these two ETFs are therefore subject to the same decision by the US regulator: a deferral. As is its right, it is deferring its conclusion.
The SEC’s policy in this area is consistent. Unless it decides against the applicants from the outset, the stock exchange authority multiplies postponements. For Hashdex and Grayscale, and for BTC and ETH, patience remains the order of the day.
SEC opposition increasingly denounced
To date, the SEC has consistently opposed the listing of Bitcoin cash funds. And Hashdex and Grayscale are not the only unsatisfied candidates. By 2023, there will be more than a dozen applicants seeking authorization to launch spot ETFs.
Financial institutions are now also interested in comparable products for Ether. But here again, the SEC is putting up resistance. Sooner or later, the SEC will have to make its decision, and justify it.
In the case of previous Bitcoin spot ETFs, the SEC has rejected the idea, mainly on the grounds of the risk of manipulating the BTC market. However, the SEC’s arguments are now being undermined.
BTC and ETH prices unaffected by postponements
For supporters of these financial products, the 2021 approval of Bitcoin futures ETFs is the best illustration yet of the viability of cash funds. In any case, investors don’t seem to have been put off by the regulator’s hostility.
Despite the rejections and postponements, the Bitcoin price is on an upward trend. At the time of writing, it stands at over $37,000, up 2.5% over 24 hours. As for Ethereum, its price has passed the $2,000 mark again.
Further SEC notices are expected, one of which is imminent with a deadline of Friday November 17. It concerns Franklin Templeton’s Bitcoin ETF. A further postponement is more than likely. The SEC will then have a reprieve until early next year.
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