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<\/p>\nAsset manager Hashdex recently held a meeting with the United States Securities and Exchange Commission to address the regulator\u2019s concerns about its application to allow the Hashdex Bitcoin Futures exchange-traded fund (ETF) to hold spot Bitcoin, a source familiar with the matter told Cointelegraph.\u00a0<\/p>\n
As per a memorandum\u00a0released\u00a0by the Division of Trading Markets, the meeting took place on Oct. 13, with six SEC officials and representatives of Hashdex, NYSE Arca, Tidal Financial Group and law firm K&L Gates in attendance.\u00a0<\/p>\n
In the meeting, Hashdex presented its mechanism allowing spot Bitcoin (BTC) to be traded and held in the ETF on the Chicago Mercantile Exchange (CME), which the Commodity Futures Trading Commission regulates.<\/p>\n
Hashdex\u2019s filing differs from other spot Bitcoin applications because it doesn\u2019t have a surveillance-sharing agreement with crypto exchange Coinbase. Instead, Hashdex proposes to acquire spot BTC from physical exchanges within the CME market, thus making it entirely reliant on CME pricing for transactions,\u00a0according to an SEC filing by NYSE Arca in late August. <\/p>\n
A presentation shared with SEC officials during this month\u2019s meeting shows that the strategy is also built on the commission\u2019s Teucrium Order, which states that the Bitcoin futures market is sufficiently developed to support financial products seeking exposure to BTC.\u00a0<\/p>\n
As a next step, the SEC may ask for more information before the application\u2019s first deadline on Nov. 17, according to the person with knowledge of the matter. <\/p>\n
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Hashdex claims to have over $380 million in assets under management and 14 exchange-traded products (ETPs) across seven countries.<\/p>\n
The SEC approved Hashdex\u2019s Bitcoin Futures ETF in April 2022. The product has been listed on NYSE Arca since September last year. If the rule change is approved, the ETF will be able to hold spot Bitcoin as well.\u00a0<\/p>\n
Several major asset managers are racing to list the first spot Bitcoin ETF in the United States. BlackRock’s ETF proposal was\u00a0recently listed on the Depository Trust & Clearing Corporation (DTCC), suggesting approval could be on the way, according to Bloomberg ETF analyst Eric Balchunas. <\/p>\n
\u201cThe current consensus view is that the SEC will approve all spot ETFs within three months,\u201d said the source.<\/p>\n