The Securities and Exchange Commission (SEC) has announced a need for additional time to review a proposed exchange-traded fund (ETF) by Bitwise that aims to serve as a comprehensive crypto portfolio listed on the New York Stock Exchange's electronic platform.
This regulatory filing, dated January 14, responds to a request made by NYSE in December to list the Bitwise 10 Crypto Index Fund on NYSE Arca.
Should the application gain approval, Bitwise's ETF would become the first diversified spot crypto ETF available in US markets. Notably, it would also represent the first US ETF to include altcoins, or alternative cryptocurrencies.
This fund is structured to provide investors with an opportunity to diversify their crypto holdings, including mainstream and emerging digital assets like Bitcoin, Ethereum, Solana, and others such as XRP, Cardano, Avalanche, Bitcoin Cash, Chainlink, Uniswap, and Polkadot.
Acknowledging the growing interest in such products, the SEC has decided to extend the time frame required to thoroughly evaluate Bitwise's proposal. The SEC’s decision underscores the complexities and the regulatory scrutiny involved in introducing crypto-based financial products to mainstream markets.
The allure of crypto index ETFs has gained the attention of major industry players. After the introduction of ETFs focusing on Bitcoin and Ether in January and July, there is a clear momentum for broader index ETFs. These funds are seen as the logical progression, offering efficiency and diversity similar to traditional financial indices like the S&P 500.
Highlighting this trend, Katalin Tischhauser, head of investment research at Sygnum, remarked on the suitability of index ETFs for the crypto landscape. This perspective mirrors the industry’s push to simplify crypto investment for a wider audience.
In a separate development, the NYSE filed in November to list another Bitwise fund, specifically targeting a balanced allocation to Bitcoin and Ethereum. Bitwise aims to provide an accessible avenue for investors to gain exposure to these leading digital assets.
Furthermore, NYSE Arca proposed listing Grayscale's Digital Large Cap Fund, along with competing initiatives from Hashdex and Franklin Templeton, showcasing a bustling, competitive environment for crypto index fund offerings. Bitwise remains active in this landscape, having submitted plans for a Bitcoin Standard Corporations ETF designed to invest in companies with significant Bitcoin reserves, signaling the diverse innovation occurring within the sector.