SEC delays Hashdex Bitcoin spot ETF, Bitcoin rises 6% against the trend

The approval window for the highly anticipated first Bitcoin spot ETF is gradually closing. The SEC officially postponed the decision on the Bitcoin spot ETF submitted by Hashdex yesterday. Bloomberg ETF analyst James Seyffart believes that the postponement decisions for Franklin Templeton and GlobalX will also be announced soon.

Three Bitcoin spot ETFs will be delayed, analyst says: 90% chance of approval by 1/10

UPDATE: There's the delay order for @hashdex 's application to convert $DEFI from a #bitcoin futures ETF to an ETF that holds both futures and spot.

h/t @News_Of_Alpha https://t.co/AAHHFiMQBu pic.twitter.com/tWJrYvqOrf

— James Seyffart (@JSeyff) November 15, 2023

Hashdex Bitcoin ETF DEFI Delayed

Bloomberg ETF analyst James Seyffart's top pick for a Bitcoin spot ETF has been confirmed to be delayed!

Hashdex submitted the proposal for Hashdex Bitcoin ETF DEFI to the U.S. Securities and Exchange Commission (SEC) at the end of September, which would allow the fund to invest in Bitcoin futures contracts and physical Bitcoin within the limits of investments allowed for spot Bitcoin. In other words, DEFI aims to be a strategic fund that holds both spot and futures Bitcoin. Under this premise, the fund will also be renamed as Hashdex Bitcoin ETF.

To address concerns about Bitcoin's "potential manipulation in unregulated markets" by the SEC, Hashdex proposed using Over-the-Counter Exchange for Physical (EFP) trading at the CME Group to address this issue. James Seyffart believes that Hashdex's application is tailored to address every argument the SEC has raised in the past and may be difficult for the SEC to reject.

Hashdex's Bitcoin ETF, a hybrid of spot and futures, addresses manipulation concerns with CME OTC trading

Franklin Templeton and GlobalX ETFs Expected to be Delayed as Well

The deadlines for two other Bitcoin spot ETFs, Franklin Templeton and GlobalX, are also approaching, and Seyffart believes that the SEC may announce delays for them this week.

Furthermore, Seyffart mentioned that Grayscale's application for an Ethereum futures ETF has also been delayed. Despite multiple Ethereum futures ETFs being approved in the U.S., he is not surprised by Grayscale's product delay, as he sees it as a move in the ongoing game between Grayscale and the SEC.

I was initially unsure why they would even file for this. But my thoughts have evolved over the last few weeks and they are basically this:
Grayscale is playing Chess, not checkers here. They're likely hoping to force the SEC into issuing a 19b-4 decision on an ETH futures ETF.…

— James Seyffart (@JSeyff) November 15, 2023

Bitcoin Unfazed by News, Surges Over 6% in 24 Hours

Interestingly, Bitcoin's trend was on the rise yesterday. Bitcoin saw a gradual increase last night, and after the news was announced, a mild candle immediately dropped from around $37,400 to about $36,800, but then resumed its upward trend. At the time of writing, Bitcoin was priced at $37,810, with a 6.4% increase over the past 24 hours.