The US Securities and Exchange Commission (SEC) has put the brakes on approving a new ETF that would invest in both Bitcoin and Ethereum. This ETF, proposed by Brazilian asset manager Hashdex, would be the first of its kind.
What’s the Hold Up?
The SEC is taking its time to review the application. While they haven’t given a specific reason, they’ve said they need more time to consider all aspects of the fund.
The SEC was originally supposed to make a decision by August 16th, but they’ve now pushed the deadline to September 30th.
More on the ETF
The Hashdex ETF would invest 70.54% in Bitcoin and 29.46% in Ethereum, with the remaining percentage held in cash for operational costs.
Coinbase and BitGo, two major players in the crypto space, would be responsible for safeguarding the assets in the fund.
Meanwhile, Another Bitcoin ETF is in the Works
The Chicago Board Options Exchange (CBOE) has resubmitted its application for a Bitcoin ETF. This time, the application is even longer, suggesting they’ve been talking to the SEC.
However, the SEC could still delay a decision on this ETF, pushing the approval deadline to April 25th.
What are Bitcoin ETF Options?
Bitcoin ETF options are a type of financial derivative that gives investors the right to buy or sell shares of a Bitcoin ETF at a specific price before a certain date.
They can be used to protect against price drops or to bet on price movements.
