The U.S. Securities and Exchange Commission (SEC) has halted the conversion of the Bitwise 10 Crypto Index Fund to an exchange-traded fund (ETF), surprising analysts and investors.
Reasons for the Conversion Halt
The SEC stopped the process of converting the Bitwise 10 Crypto Index Fund to an ETF just hours after the commission's Division of Trading and Markets granted initial approval. This decision came as a shock, particularly given the pro-crypto stance of the new SEC leadership.
Analyst Discussions
ETF analyst Nate Geraci described the sudden reversal as 'bizarre,' noting that a similar situation occurred with the Grayscale Digital Large Cap ETF (GDLC). In both instances, SEC staff approved the conversion of the products before unexpectedly hitting the pause button for unknown reasons.
Future of XRP ETFs
Some analysts believe that XRP ETFs may find themselves in regulatory limbo due to the SEC working on a new universal listing framework, with spot-based altcoin ETFs likely not being approved until late 2025. However, U.S. investors can already gain exposure to leveraged and futures-based XRP and Solana ETFs.
Recent events surrounding the Bitwise 10 Crypto Index Fund highlight the uncertainty and volatility in the regulatory landscape of crypto assets in the U.S., despite the SEC's more proactive approach to crypto investment.
