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Decision on Bitwise's Crypto Index Fund to ETF Conversion Pushed Back by SEC
The U.S. Securities and Exchange Commission (SEC) has postponed its decision regarding Bitwise Asset Management's proposal to convert the Bitwise 10 Crypto Index Fund into an exchange-traded fund (ETF).
Originally scheduled for a ruling on Jan. 17, the SEC has extended the timeline by 45 days, moving the final decision date to March 3. This extension allows the agency more time to consider the proposed rule change and associated issues.
The Bitwise 10 Crypto Index Fund, trading under the ticker “BITW,” provides market cap-weighted exposure to various crypto, including Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), Avalanche (AVAX), Chainlink (LINK), Polkadot (DOT), Bitcoin Cash (BCH) and Uniswap (UNI). NYSE Arca submitted the proposed rule change to the SEC on Nov. 14, with the filing published for public comment in the Federal Register on Dec. 3.
In related developments, Osprey Funds announced its intent to file a registration statement with the SEC to convert its Osprey Bitcoin Trust (OBTC) into an ETF.
This announcement follows the termination of a prior asset purchase agreement with Bitwise, which was intended to acquire OBTC assets. The agreement was dissolved after the parties failed to secure necessary regulatory approvals by the end of December.
James Seyffart, an analyst at Bloomberg ETF, noted that the SEC’s delay on Bitwise’s filing was anticipated, adding that a similar conversion request from Grayscale is also expected to face delays, with a deadline set for Feb. 2.
In November, the SEC had previously delayed decisions on spot Ethereum ETF proposals from both Bitwise and Grayscale. However, it did approve the first spot Bitcoin and Ethereum combo ETFs from Hashdex and Franklin Templeton in December.