SEC Postpones Bitwise Top 10 Crypto Index ETF to March 2025
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Bitwise Asset Management's proposed "Bitwise 10 Crypto Index" exchange-traded fund (ETF), extending the review period to March 3, 2025. The regulator stated it needs more time to thoroughly evaluate the proposal, which seeks to offer investors exposure to the top 10 cryptocurrencies by market capitalization.
A Closer Look at Bitwise's Proposal
The Bitwise 10 Crypto Index Fund, which Bitwise has managed privately since 2018, aims to track the performance of a basket of leading cryptocurrencies, including Bitcoin, Ethereum, Solana, XRP, Cardano, Avalanche, Chainlink, Bitcoin Cash, Polkadot, and Uniswap. The proposal to list and trade shares of this fund on the NYSE Arca exchange was filed on November 14, 2024, and published for public comment on December 3, 2024.
SEC Extends Review, Reflecting Cautious Approach
The SEC was initially required to make a decision within 45 days of the proposal's publication, setting a deadline of January 17, 2025. However, the agency has now exercised its option to extend the review period, reflecting its cautious approach to regulating cryptocurrency investment products.
Bitwise Expands its Crypto ETF Ambitions
This delay follows Bitwise's recent filing in December for another ETF, the "Bitcoin Standard Corporations ETF." This proposed fund would invest in companies that hold significant amounts of Bitcoin on their balance sheets, further demonstrating Bitwise's commitment to expanding crypto investment options.
A Milestone or Another Delay? Industry Watches Closely
The SEC's decision on the Bitwise 10 Crypto Index ETF will be closely watched by the industry. Approval would represent a significant milestone in the regulator's evolving stance on cryptocurrency investment vehicles. However, the extended review period suggests that the SEC is taking a deliberate and thorough approach to evaluating the potential risks and benefits of such a product.
The Road Ahead: Implications for Crypto ETFs
The SEC's decision to postpone its ruling on the Bitwise 10 Crypto Index ETF underscores the regulator's ongoing deliberation regarding cryptocurrency investment products. While the delay may disappoint some in the industry, it reflects the SEC's commitment to a comprehensive review process. The ultimate decision, now expected in March 2025, will have significant implications for the future of crypto ETFs and the broader digital asset market.