The SEC has postponed its decision on the Bitwise 10 Crypto Index ETF until March 3, 2025, citing the need for a thorough review. Learn about the proposal’s implications for crypto ETF.
SEC Postpones Bitwise 10 Crypto Index ETF Decision
The U.S. Securities and Exchange Commission (SEC) announced a delay in its decision on the Bitwise 10 Crypto Index ETF, extending the review period until March 3, 2025. Initially set for a January 17 deadline, the postponement allows the SEC additional time to assess the fund’s proposal for listing on NYSE Arca.
The proposed ETF, managed by Bitwise Asset Management, aims to track the performance of the Bitwise 10 Large Cap Crypto Index, which includes the ten largest cryptocurrencies by market capitalization. Rebalanced monthly, the index is designed to provide both retail and institutional investors a diversified entry point into the cryptocurrency market while addressing concerns around security and liquidity.
A History of Regulatory Hesitation
The SEC’s cautious approach toward cryptocurrency ETFs stems from concerns over market manipulation, liquidity risks, and investor protection. Under the Biden administration, stringent policies have characterized regulatory attitudes toward digital assets, leaving industry advocates hopeful for a shift under the Trump administration.
NYSE Arca initially filed its rule-change request for the ETF in November 2024. Although federal regulations require the SEC to review such filings within 45 days, extensions of up to 45 days are permitted for further analysis.
Implications for Cryptocurrency Markets
The SEC’s extended timeline underscores ongoing regulatory uncertainty in the digital asset space. For proponents of cryptocurrency ETFs, the March 3 deadline represents a pivotal moment, potentially shaping the adoption and oversight of digital asset investment tools.
What’s Next?
The SEC stated the extension would allow for a comprehensive evaluation of the proposal’s potential impacts on market integrity and investor protection. Advocates eagerly await the final decision, which could set a significant precedent for the cryptocurrency industry.
Stay updated on cryptocurrency regulation and ETF developments by following official announcements from the SEC and market leaders like Bitwise.
