Meeting with the U.S. Securities and Exchange Commission
Asset manager Hashdex recently met with the U.S. Securities and Exchange Commission (SEC) to discuss concerns raised about its application for the Hashdex Bitcoin Futures exchange-traded fund (ETF), according to a source familiar with the matter. The meeting, which took place on Oct. 13, included representatives from the SEC, Hashdex, NYSE Arca, Tidal Financial Group, and law firm K&L Gates.
Unique Approach to Spot Bitcoin
During the meeting, Hashdex presented its unique mechanism for allowing spot Bitcoin to be traded and held in the ETF on the Chicago Mercantile Exchange (CME). Unlike other spot Bitcoin applications, Hashdex does not have a surveillance-sharing agreement with Coinbase. Instead, it plans to acquire spot BTC from physical exchanges within the CME market, relying solely on CME pricing for transactions.
Built on the Teucrium Order
Hashdex's strategy is based on the SEC's Teucrium Order, which recognizes the maturity of the Bitcoin futures market and its ability to support financial products seeking exposure to BTC. A presentation shared during the meeting highlighted this alignment with the commission's order.
Next Steps and Deadline
The SEC may request further information before the application's first deadline on Nov. 17. This suggests that the regulatory process is ongoing, and additional details may be required to address any outstanding concerns.
About Hashdex and the Bitcoin Futures ETF
Hashdex is an asset manager with over $380 million in assets under management and 14 exchange-traded products (ETPs) across seven countries. Its Bitcoin Futures ETF was approved by the SEC in April 2022 and has been listed on NYSE Arca since September of last year. If the rule change is approved, the ETF will be able to hold spot Bitcoin alongside Bitcoin futures.
Race to List Spot Bitcoin ETFs
Several major asset managers, including BlackRock, are competing to list the first spot Bitcoin ETF in the United States. The recent listing of BlackRock's ETF proposal on the Depository Trust & Clearing Corporation (DTCC) suggests that approval may be on the horizon. Industry experts anticipate that the SEC will approve all spot ETFs within the next three months.
