The U.S. Securities and Exchange Commission (SEC) has once more slowed the momentum of ETF developments in the crypto sector. This latest delay affects Bitwise’s proposal to convert its primary index fund into an exchange-traded fund, with a final decision currently on hold.
SEC Delays Decision on Bitwise ETF Transformation
Altcoins like XRP, Solana (SOL), and Cardano (ADA) remain in regulatory limbo due to this move, even as anticipation for approval continues to build across the market.
Bitwise launched its 10 Crypto Index Fund (BITW) in November 2017 to mirror the performance of the top ten cryptocurrencies by market capitalization. Currently, the fund manages approximately $1.44 billion in assets.
While Bitcoin (BTC) comprises roughly 77% of the portfolio and Ethereum (ETH) accounts for about 12%, the fund also offers investors exposure to other prominent digital assets, including XRP, SOL, and ADA.
Although the SEC’s new leadership has shown a more favorable stance toward the crypto sector, no spot ETF tied to an individual altcoin has been approved. Applications from firms such as Franklin Templeton, Canary Capital, 21Shares, and Bitwise remain under regulatory review, with proposals aiming to list spot ETFs for assets like XRP.
Cryptocurrency advocates and market observers had anticipated that the prevailing wave of optimism and evolving regulatory landscape would accelerate ETF approvals. Despite these expectations, the SEC has maintained a cautious stance. Analysts now believe that greenlighting of these altcoin-focused ETFs might be deferred until late 2025.
Despite regulatory delays, overall sentiment remains optimistic. On the prediction platform Polymarket, a significant majority has wagered on ETF approvals occurring within the current year, reflecting the crypto community’s continued hopeful outlook.
At present, investors in XRP, Solana, and Cardano remain on edge, closely monitoring developments as the U.S. Securities and Exchange Commission continues its evaluation of the future of altcoin-focused ETFs.
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