The U.S. Securities and Exchange Commission (SEC) has postponed a decision on Bitwise's proposal to convert its crypto index fund into an exchange-traded fund (ETF) until March 2025. This allows the SEC to conduct a more thorough analysis of the potential implications.
Reasons for Delay
The SEC has extended the review period to ensure a detailed assessment of the proposed rule change and its associated issues. NYSE Arca initially filed the application on November 15, 2024, and it was published in the Federal Register on December 2.
Bitwise Fund and Its Goals
Valued at $1.4 billion, the Bitwise 10 Crypto Index Fund tracks the performance of the ten largest crypto assets. Hunter Horsley, CEO of Bitwise, emphasized that converting the fund to an ETF would enhance efficiency and investor protection.
Impact of Delay on Bitwise
Bloomberg analyst James Seyffart anticipates similar delays for other funds seeking conversion. In November, the SEC already postponed its decision on Ethereum ETFs from Bitwise and Grayscale until February. However, the first Bitcoin and Ethereum combined ETFs were approved in December.
The SEC's delayed decision reflects its cautious approach towards crypto investment products. During this time, companies may reconsider their strategies for future endeavors.
