The Bitwise Crypto Index Fund, managed by Bitwise, received approval from the U.S. Securities and Exchange Commission to convert into an exchange-traded fund (ETF). However, the launch of this fund is facing delays due to a regulatory stay.
ETF Approval and Its Structure
The ETF, managed by Bitwise, aims to track a basket of leading cryptocurrencies. According to documents filed with the SEC, its current allocations include 78.72% Bitcoin, 11.10% Ethereum, and 4.97% XRP. It also holds smaller portions of altcoins like Solana, Cardano, Chainlink, SUI, Avalanche, Polkadot, and Litecoin. Under SEC guidelines, at least 85% of ETF assets must be in cryptocurrencies already approved for exchange-traded products.
Reasons for ETF Launch Delay
Despite the official approval, the ETF has not gone live due to a regulatory stay imposed by the SEC under Rule 431(e). This unexpected move has drawn criticism across the industry. Nate Geraci, president of The ETF Store, called the delay "bizarre" and argued that both Bitwise and other similar products, like Grayscale's Digital Large Cap Fund, should be allowed to proceed.
> "This delay contradicts the very approval granted," Geraci stated.
Current Trends in the Altcoin Market
While the ETF is stuck in limbo, altcoins are already seeing renewed interest. Over the past 30 days, Bitcoin's dominance in the market has fallen from 65% to 60%, signaling a shift in sentiment. Investors appear to be rotating capital into altcoins, which are posting stronger returns:
* Ethereum jumped 26% * Dogecoin soared 40% * XRP gained 22% * Cardano rose 23%. Crypto analyst Kyle Chassé noted this trend, emphasizing that altcoins are gaining momentum even without institutional vehicles like ETFs.
The approval of the ETF by Bitwise marks a significant step toward providing investors with access to diverse crypto assets. However, the delay in its launch due to regulatory stays creates uncertainty in the market. Interest in altcoins, however, continues to grow, indicating potential further shifts in the cryptocurrency ecosystem.
