- The SEC delayed making a decision on converting Bitcoin and Ethereum futures ETFs to spot ETFs, saying it needs more time to evaluate the proposed rule changes.
- Several companies have launched Bitcoin and Ethereum futures ETFs, while Hashdex and Grayscale want to convert their futures ETFs to spot ETFs.
- The SEC will make a decision on the proposed Bitcoin spot ETF and Ethereum spot ETF by January 1, 2024 after fully considering the implications.
The Securities and Exchange Commission (SEC) has delayed making a decision on whether to allow Bitcoin and Ethereum futures exchange-traded funds (ETFs) to convert to spot ETFs. The agency said it needs more time to consider the proposed rule changes.
Background on Bitcoin and Ethereum Futures ETFs
Several companies have launched Bitcoin and Ethereum futures ETFs, which invest in futures contracts rather than directly in the cryptocurrencies themselves. These include:
- VanEck and ProShares Bitcoin futures ETFs
- VanEck and ProShares Ethereum futures ETFs
Hashdex’s Proposed Bitcoin Spot ETF
In September 2022, crypto asset manager Hashdex filed with the SEC to convert its Bitcoin futures ETF into a Bitcoin spot ETF. The proposed fund would hold a mix of Bitcoin futures, spot Bitcoin, and cash to avoid risks of market manipulation.
Other firms like Fidelity and BlackRock have also applied for spot Bitcoin ETFs. Approval of spot Bitcoin ETFs could further support the rebounding crypto market.
Grayscale’s Proposed Ethereum Spot ETF
Shortly after the first Ethereum futures ETFs were approved, Grayscale Investments filed with the SEC to convert its Ethereum futures ETF into a spot ETF.
The SEC’s Decision
In separate filings on November 15, 2023, the SEC declared it needs more time to evaluate the proposed rule changes for both the Hashdex Bitcoin ETF and Grayscale Ethereum ETF.
The agency said it will make a decision on whether to allow the conversions by January 1, 2024. The additional time will allow the SEC to fully consider the implications of approving the first spot Bitcoin and Ethereum ETFs.
