Étienne Girard
The U.S. Securities and Exchange Commission (SEC) has delayed its ruling on the proposal to convert the Bitwise 10 Crypto Index Fund (BITW) into an exchange-traded fund (ETF).
The fund, which tracks a market cap-weighted index of cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), trades on OTC markets and seeks approval for listing on NYSE Arca. The SEC’s review period, initially set to conclude on January 17, has now been extended by 45 days to March 3.
In its notice, the SEC emphasized the need for additional time to evaluate the proposed rule change and the concerns raised. Bloomberg ETF analyst James Seyffart commented on the expected delay, stating that a final decision could extend until July. Seyffart also noted the potential postponement of a similar application by Grayscale to convert its mixed-crypto fund into an ETF, with a February 2 deadline looming.
While the SEC has previously postponed rulings on crypto funds, including Bitwise’s and Grayscale’s spot Ethereum ETF applications, it approved a hybrid spot Bitcoin and Ethereum ETF from Hashdex and Franklin Templeton in December after an initial deferment. Bitwise also submitted a request in October for an XRP-focused ETF.
Osprey Funds Plans ETF Transition Despite Setback
On the same day, Osprey Funds announced its intention to convert its Osprey Bitcoin Trust (OBTC) into an ETF by filing a registration statement with the SEC “as soon as practicable.”
Previously, Osprey had entered an agreement with Bitwise Asset Management to transfer all OBTC assets to Bitwise’s proposed spot Bitcoin ETF. However, this agreement was terminated due to regulatory approval delays by December 31.
In a press release, Osprey stated that it would update investors on future strategies for OBTC and explore alternative solutions to meet market demands.
What’s Next for Crypto ETFs?
With regulatory authorities continuing to exercise caution, the path forward for crypto ETFs remains uncertain. However, industry stakeholders remain hopeful that increased clarity and approvals will unlock further innovation in the digital asset investment space.
