US SEC Postpones Ruling on Bitwise 10 Crypto Index Fund

Highlights:

• The United States SEC has postponed its final decision on approving or rejecting the Bitwise 10 crypto index fund.
• In its new filing, the regulatory body said it needed more time to critically review the application.
• The new deadline for the SEC’s verdict is now on March 3, 2025.

The United States Securities and Exchange Commission (SEC) has postponed its final ruling on the Bitwise 10 crypto index Exchange Traded Fund (ETF). The regulatory watchdog relayed its reason for the extension through a new filing dated January 14, 2025.

In the latest filing that has attracted considerable attention, the SEC noted that the postponement does not mean rejection of the initial proposal. Instead, it needs more time to thoroughly review the application. The new date for the final verdict will now be on March 3, 2025.

Part of the SEC statement read:

” Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act, designates March 3, 2025, as the date by which the Commission shall either approve or disapprove or institute proceedings to determine whether to disapprove the proposed rule change.”

Update: As expected the SEC has punted/delayed the decision on @BitwiseInvest's filing to convert the Bitwise 10 Crypto Index Fund (BITW) into an ETF. Final deadline is in late July pic.twitter.com/wRzaROBNqy

— James Seyffart (@JSeyff) January 14, 2025

Initial SEC Decision Deadline will Elapse in a Few Days

It is worth noting that NYSE Arca, Inc. presented a proposed rule change for listing and trading the Bitwise 10 crypto index ETF to the regulatory body on November 14, 2024. After application, the proposed rule change was published for comments in the Federal Register on December 3, 2024.

So far, the regulatory body hasn’t received any comment on the proposal, which should ordinarily hasten its approval window. By obligation, the SEC is expected to review and possibly approve or reject the filing within forty-five days, which should elapse on January 17, 2025.

However, there are exceptions, which give the commission the right to extend its final decision by another forty-five days. Before postponing its final decision, the law stipulated that the SEC must publish the reasons for its decision. Following its latest publication, it’s obvious that the regulatory body is still in line with the law stipulations. Hence, NYSE Arca has no choice but to patiently wait for the deadline.

Meanwhile, if approved, the ETF aims to provide exposure to leading and valuable cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, Cardano (ADA), Avalanche (AVAX), Chainlink (LINK), Bitcoin Cash (BCH), Polkadot (DOT), and Uniswap (UNI).

Postponement Implications

With Donald Trump assuming office in a few days, specifically on January 20, it becomes obvious that new sets of individuals will make the final decision. For context, Gary Gensler has announced that his stepping down as the regulatory body chairman on January 20.

Even before relaying his decision to retire, rumors have been spreading, projecting several people for the position. Notably, Paul Atkins, who is currently the CEO of consulting firm Patomak Global Partners, appears to be the most likely candidate, having earned praises for his pro-crypto stance from the United States president-elect.

From all indications, the changes in the United States political and regulatory landscape possess a good tendency to favor crypto projects. Therefore, it becomes safe to assert that the 10 crypto index ETF by Bitwise will earn regulatory approval soon.

As expected the Gensler #SEC delays approval of @BitwiseInvest Bitwise 10 crypto index #ETF containing $BTC, $ETH, $SOL, $XRP, $ADA, $AVAX, $LINK, $BCH, $DOT, $UNI.

Expect all these to be approved shortly after #Trump inaugeration.https://t.co/xNf5zAjXLH

Self-Regulatory… pic.twitter.com/YYdexnNjNO

— MartyParty (@martypartymusic) January 15, 2025

Apart from the 10 crypto index ETFs by Bitwise, 2025 could witness several other ETF approvals. Notably, Solana (SOL), Ripple’s XRP, and Litecoin (LTC) are among the leading entities patiently waiting for the SEC approvals following earlier ETF filing applications. It is left to see how events unfold in the coming days with Trump as the new United States president.