The U.S. SEC has delayed its decision on the Bitwise 10 Crypto Index ETF to be listed and traded on NYSE Arca.
In November 2023, Bitwise filed with the SEC to convert the Bitwise 10 Crypto Index fund into an ETF. The asset manager said the ETF would give investors indirect exposure to the underlying digital assets. Meanwhile, a third-party custodian would maintain custody of the “Portfolio Assets.”
Bitwise launched the fund in 2017 with several allocations weighted toward the largest cryptocurrencies by market cap. These include Bitcoin (BTC) and Ether (ETH), which account for 75% and 16% of the $1.459 billion fund. Others are Solana (SOL), XRP, Avalanche (AVAX), Cardano (ADA), Bitcoin Cash (BCH), Polkadot (DOT), Chainlink (LINK), and Uniswap (UNI).
SEC Pushes the Deadline for Its Decision
According to a notice issued on January 14, the SEC has extended the review period for a proposed rule change that would permit NYSE Arca to list the Bitwise 10 Crypto Index ETF for trading. The regulator has pushed the timeline for its decision from January 17 to March 3. They have cited the need for additional time to consider “issues” raised in the proposal.
“The commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has time to consider the proposed rule change and the issues raised therein,” the statement read.
Commenting on the development, Bloomberg ETF analyst James Seyffart said the SEC extension had been anticipated. He noted that a similar request by asset manager Grayscale might also face delays as the regulator’s February 2 deadline approaches. Meanwhile, Osprey Funds filed a registration statement with the SEC proposing to convert its Osprey Bitcoin Trust (OBTC) into an ETF.
The asset manager’s move followed the termination of a prior purchase agreement with Bitwise, which sought to buy OBTC assets. The parties dissolved the agreement after failing to secure regulatory approvals by the end of December last year.
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