Recently, the SEC halted the approval process for Bitwise 10 Crypto Index ETF, sparking discussions among experts and investors.
Approval Process for Bitwise Fund
On July 22, the SEC initiated the approval process for the Bitwise 10 Crypto Index ETF. However, following a review, SEC Assistant Secretary Sherry R. Haywood halted the submission process. In her letter, she noted that the commission would reconsider the matter based on Rule 431. Thus, the order issued on July 22 is paused until further SEC decisions.
SEC's Decision on Grayscale Fund
The SEC had also previously delayed decisions regarding Grayscale Digital Large Cap Fund LLC. This fund, which has significant investments in Bitcoin and Ethereum, was also awaiting approval to convert to an ETF. Despite the SEC agreeing to expedite Grayscale's request, the decision was put on hold the very next day, and the company continues to work with regulators.
Analysts' Opinions on SEC's Decision
Analysts such as Scott Johnsson and James Seyffart shared their thoughts on the reasons behind the SEC's halts. Johnsson suggested that Democratic commissioner Caroline Crenshaw may add uncertainty to the approval processes. Seyffart supported this view, indicating a possibility of establishing standards for crypto ETFs, which could accelerate their listing. They believe the SEC will continue delaying decisions until a clear plan is developed.
The halt of the approval process for the Bitwise crypto index fund and similar delays in other projects draw renewed attention to SEC practices in cryptocurrency regulation and may impact the prospects for future ETFs.
