The U.S. Securities and Exchange Commission (SEC) has announced the postponement of its approval decision on a dual crypto spot ETF from Brazilian asset manager Hashdex. The development comes ahead of a critical deadline in the proposed investment fund’s approval process.

SEC Asks for Time to Review Hashdex Mixed Crypto Spot ETF

On June 17, the Nasdaq Stock Exchange Market filed a filing with the SEC, requesting a rule change that would allow the listing of a combined Bitcoin and Ethereum ETF, known as the Hashdex Nasdaq Crypto Index US ETF. Bitcoinist reported that this dual ETF, the first of its kind, will consist of a 70.54% to 29.46% ratio of Bitcoin and Ethereum, with the remaining percentage consisting of cash for operational expenses.

However, the Hashdex mixed crypto spot ETF is also subject to the addition of other assets that meet specific criteria and qualifying status. Meanwhile, US exchange Coinbase and cryptocurrency trust BitGo are designated custodians of assets invested in this fund.

Under the Securities Exchange Act, the SEC is required to provide a response to the application of commodity-based trust shares within 45 days of filing. However, the Act also allows the Commission to extend this review period to 90 days if necessary, but such a decision must be made within the initial standard 45-day period.

According to an August 9 briefing, the SEC decided to delay its response to the Hashdex Nasdaq Crypto Index ETF. While no explicit reasons were given for this decision, the Commission stated that time was needed to consider all aspects of the proposed investment fund. Following this decision, the SEC is expected to announce its approval or disapproval ruling by September 30, instead of the previous August 16 deadline.

CBOE Resubmits Bitcoin ETF Application

In other news, the Chicago Board Options Exchange (CBOE) has resubmitted its Bitcoin ETF options application to the SEC.

Bloomberg analyst James Seyffart commented on the development, stating that the newly filed application contained 29 pages more than the previous one, indicating that the exchange may have been in discussions with the Commission. However, he notes that the time factor still plays a significant role, as a late response from the SEC could push the approval deadline back to April 25. However, if both parties are already communicating, that may not be the case.

A Bitcoin ETF option refers to a financial derivative instrument that gives investors the right, but not the obligation, to buy or sell shares of a Bitcoin ETF at a predetermined price before a specific expiration date. Bitcoin ETF options are used to hedge against price declines and bet on price movements.

Main image from Dreamstime, chart from Tradingview