SEC has delayed Bitwise ETF’s approval, just hours after its staff approved it initially on Tuesday. Staff approved the Bitwise 10 Crypto Index Fund which manages assets of $1.68 Billion and includes major cryptocurrencies such as Bitcoin, Ethereum and XRP. Then, staff immediately halted it in accordance with Rule 431. The second time this month that a crypto ETF has been delayed until 2025, it is causing new uncertainty about multi-asset ETFs.
Bitwise’s multi-asset crypto ETF faces SEC scrutiny in 2025
Bitwise ETF Postponed by SEC under Internal Review Rule
SEC delays Bitwise ETF approval by using Rule 431, which allows full Commission review of decisions made staff. On Tuesday, the Division of Trading and Markets approved the Bitwise 10 Crypto Index Fund’s conversion. However, the SEC Office of the Secrecy triggered an immediate stay.
Nate GeraciThe ETF Institute’s co-founder said this:
“Both of these should be allowed to convert/uplist ASAP.”
The same thing happened with Grayscale’s Digital Large Cap Fund. It was approved before it was paused in the same circumstances. Experts have called the situation bizarre and are now unsure of what to do.
Please Read This: SEC Pauses Grayscale ETF With BTC, ETH, XRP, SOL & ADA For Review
The Multi-Asset Crypto Exchange Traded Fund Structure.
Bitwise 10 Crypto Index Fund invests 90% of its assets in Bitcoin or Ethereum. Its remaining 10% are spread among eight other cryptocurrencies including Solana and XRP. It carries an expense rate of 2.5% and is rebalanced monthly. The fund was launched in 2017 with a 2.5% rebalance.
The multi-asset crypto ETF was the first product of its type in the United States. It offered investors exposure to the digital asset market via a single, diversified product. Despite the fact that this would have been an important milestone, SEC has delayed Bitwise ETF’s approval.
Regulation Standards Lead to Ongoing Uncertainty in Approval
It is possible that the SEC has a hesitancy to launch cryptocurrencies, like XRP or ADA, because they need to create consistent standards. This delay of the crypto ETF to 2025 reflects the broader regulatory problems that face multi-asset product.
The SEC also reviewed filings by Franklin Templeton Fidelity & Invesco Galaxy the same Tuesday. It’s clear that there is active supervision of crypto ETF application right now. While the Commission is working to create comprehensive standards, there will be increased scrutiny on multi-asset ETFs.
Please Read This: XRP Price Alert: $3.47 Holds Key as 11 ETF Giants Drive $5 Rally
Around a week ago, Grayscale experienced a similar delay. The company warned that investors were suffering and raised the prospect of legal action. Bitwise 10’s Crypto Index Fund faces the same uncertainty, but there is no deadline set by the Commission for its review under Rule 431.
The SEC has postponed Bitwise ETF approval for an indefinite period of time. This leaves investors and the wider crypto community with no clarity as to when the multi-asset product will receive its final greenlight.
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Source: watcher.guru
