SEC Extends Review of Bitwise Crypto ETF Until March 2025

• ETF will include major cryptocurrencies such as Bitcoin and Ethereum.
• Delay reflects SEC's caution in regulating cryptocurrency ETFs.

The U.S. Securities and Exchange Commission (SEC) has postponed its final decision on the proposed Bitwise 10 Crypto Index ETF until March 3, 2025, extending the review period for this major cryptocurrency investment fund. The ETF seeks to represent the top ten cryptos on the market, including Bitcoin, Ethereum, and Solana.

Initiated by NYSE Arca on November 14, 2024, and officially filed in the Federal Register on December 3, the proposal has not received public comment. Under current law, the SEC had until January 17, 2025, to issue an opinion, but it has opted to extend the deadline for a more thorough review.

The delay is part of the SEC’s cautious approach to crypto ETF proposals, a potential milestone for regulation of the sector. “This delay was expected,” Bloomberg ETF analyst James Seyffart said via Twitter. He also noted that similar delays could occur for other proposals, such as Grayscale’s GDLC fund, which is expected to be decided on Feb. 2, 2025.

On the other hand, cryptocurrency analyst Marty Party suggests that the delays could be influenced by political factors, and could be accelerated after the upcoming US presidential inauguration. He highlighted the significant market impact that the approval of ETFs that include significant cryptocurrencies could have.

Additionally, in December, Bitwise submitted a new application to the SEC for a “Bitcoin Standard Corporations ETF,” which would focus on companies that hold large reserves of Bitcoin. This methodical approach reflects the SEC’s effort to balance innovation and investor protection.

While delays are a common expectation, the eventual approval of these ETFs could represent a significant step forward for cryptocurrency investment products, providing greater access to digital asset markets. Analysts and investors alike are closely monitoring such developments, given the potential transformation they could bring to the investment landscape.