The U.S. Securities and Exchange Commission (SEC) has postponed its decision regarding Bitwise's ETF proposal, raising concerns among investors and institutional players.
Delayed SEC Decision
The SEC has chosen to delay its review of Bitwise's proposal to implement **in-kind redemptions** for their Bitcoin and Ethereum ETFs until 2025. This regulatory pause aligns with previous handling patterns of crypto-based financial instruments in the U.S.
Market Impact
The immediate market impact remains limited due to the lack of new capital deployments. However, approval of such products could lower **operational costs** and spark interest from institutional investors, which would subsequently influence the market dynamics of Bitcoin and Ethereum.
Future Consequences
The postponement of a decision reflects ongoing **regulatory caution**, consistent with past SEC approaches to cryptocurrency innovations. SEC Commissioner Hester Peirce indicated that such products are indeed expected to emerge in due time.
> "In-kind creations and redemptions for crypto ETFs are definitely coming at some point." — Hester Peirce, SEC Commissioner.
The anticipated deadline in September 2025 may lead to investor interest and volatility in the market, reflecting historical patterns of investor activity.
