SEC Approves Bitwise’s Crypto ETF Then Immediately Pauses It
The US Securities and Exchange Commission (SEC) approved the conversion of Bitwise’s crypto index fund into an exchange-traded fund (ETF) but immediately paused the process pending a review. The SEC's division of trading and markets granted accelerated approval, allowing Bitwise to request an earlier effective registration. However, SEC assistant secretary Sherry Haywood stated that the order is stayed until further notice. The Bitwise 10 Crypto Index Fund, trading under the ticker BITW, includes various cryptocurrencies like Bitcoin and Ether. This situation parallels the Grayscale Digital Large Cap ETF conversion delay. Analysts suggest the SEC may be stalling to establish listing standards for crypto ETFs. The SEC also extended its deadline for ruling on in-kind redemptions for Bitwise’s Bitcoin and Ether spot ETFs, as discussions continue on simplifying the ETF approval process for crypto investment vehicles.
