Cryptocurrency Index Fund Awaits SEC Decision for ETF Listing
The United States Securities and Exchange Commission (SEC) has delayed its decision on whether to approve a cryptocurrency index fund’s listing as an exchange-traded fund (ETF) on the New York Stock Exchange (NYSE). The proposed ETF, filed by NYSE Arca, would allow investors to gain exposure to a diversified portfolio of the 10 largest cryptocurrencies by market capitalization.
SEC’s Cautious Approach to Cryptocurrency ETFs
The SEC’s decision to postpone the review of the Bitwise 10 Crypto Index Fund (BITW) is not unexpected, given the regulator’s historical cautious approach to cryptocurrency ETFs. The agency has previously expressed concerns about market manipulation, liquidity, and investor protection.
The BITW, which was initially launched in 2017, tracks the performance of a manager’s benchmark index that includes cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), and Solana (SOL). The fund has seen significant growth since its inception, with an annualized return of 32.2% by the end of 2024 and is currently valued at $1.4 billion.
Bitwise’s Plans for a Regulated Entry Point
Bitwise, which manages a cash Bitcoin ETF and an Ethereum ETF in the US market, aims to convert the BITW into an ETF to provide institutional and retail investors with a simplified and regulated entry point to the digital asset sector. The company has also applied for an XRP ETF in October.
Despite the delay, analysts expect the SEC to make a final decision on the BITW’s ETF listing by the end of July. The development comes as the SEC is expected to undergo changes under the new administration, with President Trump promising to promote clearer regulations for cryptocurrencies in his second presidential term.