SEC Delays Decision on Bitcoin-Ethereum Mixed ETF: Approval Still Pending?

On August 9, 2024, the U.S. Securities and Exchange Commission (SEC) announced a delay in its decision regarding the proposed Bitcoin-Ethereum mixed ETF by Brazilian cryptocurrency investment firm, Hashdex.

The application for this ETF was initially submitted on June 24, 2024. However, the SEC has extended the deadline for a decision—whether to approve, disapprove, or initiate proceedings—until September 30, 2024.

The SEC explained the delay as follows:

The Commission deems it appropriate to designate a longer period to consider the proposed rule change and the issues raised within it, allowing for thorough examination before determining approval or disapproval.

The ETF proposed by Hashdex is structured to comprise 70.54% Bitcoin and 29.46% Ethereum, and it is set to track the "Nasdaq Crypto US Settlement Price Index (NCIUSS)."

This mixed ETF aims to reduce the risk of price manipulation by holding not only physical Ethereum but also Ethereum futures contracts and cash.

This approach is a novel attempt compared to the previously approved Ethereum futures ETFs by the SEC, as it includes physical Ethereum.

Many investors are eagerly awaiting the SEC's decision on this mixed ETF, with particular attention to the price movements of Bitcoin and Ethereum.

Should this ETF receive approval, it could significantly expand cryptocurrency investment in the U.S. market, potentially prompting a wave of similar ETF applications from other asset management companies.

This latest announcement from the SEC adds to the uncertainty in the cryptocurrency market, creating a cautious environment for investors. The market is now focused on the SEC's final decision and the future developments that will follow.

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