SEC Delays Decision on Bitwise Crypto Index ETF, Potential Approval Still Pending
The Securities and Exchange Commission (SEC) has opted to postpone the approval process for Bitwise’s Crypto Index ETF, pushing the final ruling to March. The regulatory body requires additional time to thoroughly evaluate the proposed rule adjustment presented via the New York Stock Exchange (NYSE). The SEC articulated in a statement that it deems it necessary to extend the timeframe for deliberation to ensure comprehensive consideration of the proposed rule amendment and the associated concerns.
Bitwise’s 10 Crypto Index Fund monitors prominent digital assets with a focus on major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Solana (SOL). Drawing a parallel to Grayscale’s transformation of the Grayscale Bitcoin Trust Fund into a spot BTC ETF, Bitwise is pursuing a similar evolution for its index fund.
Potential Boost for Crypto ETFs with the New Administration?
Recent approvals of similar Crypto Index ETF proposals by Hashdex and Franklin Templeton primarily concentrating on BTC and ETH have set a precedent. Both Bitcoin and Ethereum possess regulatory clarity as securities. Nevertheless, the inclusion of eight other cryptocurrencies in Bitwise’s application, such as XRP and SOL, faces ambiguity regarding their classification as security tokens. Expectations within the market lean towards favorable outcomes under the forthcoming Trump administration.
Currently, prediction platform Polymarket suggests a probability exceeding 50% for XRP and SOL ETF approval by 2025. The forecast favors a 60% likelihood for the XRP ETF and a 74% chance of approval for the SOL ETF within this year.
Anticipations are rife within the market that the incoming administration will expedite the approval process for altcoin ETFs, potentially advancing crypto index ETF petitions, particularly following the clarification of regulatory standing for other tokens.
While outgoing SEC chair Gary Gensler has upheld his stance on enforcement action and asserted that crypto projects lacking fundamental value are destined to falter, the question looms over whether the incoming pro-crypto SEC chair, Paul Atkins, will pivot from perceived anti-crypto stances and accelerate approvals for altcoin ETFs.