Bitwise's attempt to convert its 10 Crypto Index Fund into an exchange-traded fund (ETF) has hit an unexpected snag after initial approval from the SEC.
Reasons for Bitwise's Delay
The pause comes after Deputy Secretary Sherry R. Haywood announced a review of the decision, referencing legal provisions under Rule 431. This leaves the process in a state of uncertainty as Bitwise remains in limbo.
Similarity to Grayscale's Situation
This measure mirrors a similar situation encountered by Grayscale's fund, which also faced suspension shortly after initial approval. Despite setbacks, Grayscale remains committed to completing the process.
Expert Opinions on ETF Future
Industry expert Scott Johnsson from Van Buren Capital suggested that the SEC might have initially issued approval while anticipating possible objections. Other experts, including James Seyffart from Bloomberg Intelligence, speculate that the delay could serve to develop clearer regulatory frameworks.
The current situation underscores the evolving dynamics of crypto regulation and the SEC's cautious approach towards ETF evaluations. The outcome of this review will be pivotal for Bitwise and the broader crypto market.