SEC Extends Decision Timeline on Hashdex ETF Proposal
Crypto investors eagerly awaiting the first exchange-traded fund (ETF) to hold a variety of spot cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), will need to wait a bit longer. The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision on Hashdex's ETF proposal, originally submitted in June.
Review Period Extended
On August 9, the SEC revealed that it extended the initial 45-day review period, pushing the decision date to September 30. This extension is intended to give the SEC more time to evaluate the complex proposal and its implications.
"The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues therein," the SEC stated in a filing.
Potential Market Impact
If the Hashdex Nasdaq Crypto Index US ETF gains approval, it would allow investors to engage with both BTC and ETH in a single investment vehicle, potentially including more altcoins in the future. This fund could become the first diversified spot market crypto ETF on Wall Street, marking a significant development in the crypto investment landscape.
High Expectations in the Crypto World
The possibility for approval comes amidst high expectations, following the SEC's recent approvals of spot BTC ETFs and Ethereum products. The crypto community is hopeful for more ETFs covering cryptocurrencies like Solana and XRP to receive regulatory green lights.
Understanding ETFs
For those unfamiliar, an ETF is like a basket of investments that holds various assets. Think of it as a fruit basket (the ETF) containing apples (Bitcoin), oranges (Ethereum), and potentially more fruits (other altcoins). Investors buy shares of the basket instead of the individual fruits, spreading risk and simplifying their investment choices.
