SEC Delays Decision on Bitwise ETF Amid Growing Regulatory Scrutiny

The SEC has delayed its decision on Bitwise’s proposal to convert its 10 Crypto Index Fund into an ETF, extending the deadline to March 3 for further evaluation.

The fund, trading under “BITW,” offers exposure to assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Analysts, including Bloomberg’s James Seyffart, expected the delay and anticipate a final ruling could be pushed to July.

While the SEC has approved spot Bitcoin and Ethereum combo ETFs from Franklin Templeton and Hashdex, Bitwise and Grayscale continue to face regulatory hurdles, with Grayscale’s application for a similar ETF likely to be delayed as well.

Separately, Osprey Funds announced plans to convert its Bitcoin Trust (OBTC) into an ETF after terminating a deal with Bitwise due to regulatory setbacks.

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Osprey is now exploring new strategies for the fund. These delays highlight the challenges crypto firms face as they work to bring ETFs to market amidst ongoing regulatory caution.

Kosta Gushterov