Hashdex sits down with SEC over spot Bitcoin ETF application

Asset manager Hashdex precocious held a gathering with the U.S. Securities and Exchange Commission to code the regulator's concerns astir its exertion to let the Hashdex Bitcoin Futures exchange-traded money (ETF) to clasp spot Bitcoin, a root acquainted with the substance told Cointelegraph. 

As per a memorandum released by the Division of Trading Markets, the gathering took spot connected Oct. 13, with six SEC officials and representatives of Hashdex, NYSE Arca, Tidal Financial Group, and instrumentality steadfast K&L Gates successful attendance.

In the meeting, Hashdex presented its mechanics allowing spot Bitcoin (BTC) to beryllium traded and held successful the ETF connected the Chicago Mercantile Exchange (CME), which the Commodity Futures Trading Commission regulates.

Hashdex’s filing differs from different spot Bitcoin applications due to the fact that it doesn't person a surveillance-sharing statement with crypto speech Coinbase. Instead, Hashdex proposes to get spot BTC from carnal exchanges wrong the CME market, frankincense making it wholly reliant connected CME pricing for transactions, according to an SEC filing by NYSE Arca successful precocious August.

A presumption shared with SEC officials during this month’s gathering shows that the strategy is besides built connected the commission's Teucrium Order, which states that the Bitcoin futures marketplace is sufficiently developed to enactment fiscal products seeking vulnerability to BTC.

As a adjacent step, the SEC whitethorn inquire for much accusation earlier the application's archetypal deadline connected Nov. 17, according to the idiosyncratic with cognition of the matter.

Screenshot of Hashdex's presumption to the U.S. Securities and Exchange Commission. Source: SEC

Hashdex claims to person implicit $380 cardinal successful assets nether absorption and 14 exchange-traded products (ETPs) crossed 7 countries. An ETP is simply a benignant of concern conveyance backed by a crypto token.

The SEC approved Hashdex's Bitcoin Futures ETF successful April 2022. The merchandise has been listed connected NYSE Arca since September past year. If the regularisation alteration is approved, the ETF volition beryllium capable to clasp spot Bitcoin arsenic well.

Several large plus managers are racing to database the archetypal spot Bitcoin ETF successful the United States. BlackRock's ETF connection was recently listed connected the Depository Trust & Clearing Corporation (DTCC), suggesting support could beryllium connected the way, according to Bloomberg ETF expert Eric Balchunas.

"The existent statement presumption is that the SEC volition o.k. each spot ETFs wrong 3 months," said the source.

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