SEC approves, then instantly pauses Bitwise’s ETF conversion

Key Points

1. The SEC granted 'accelerated approval' for Bitwise’s 10 Crypto Index Fund to convert into an ETF but paused it pending a review, leaving the status uncertain.

2. Bitwise’s fund, trading as BITW, includes exposure to cryptocurrencies like Bitcoin and Ether, with the conversion application submitted in November.

3. Analysts compare the situation to Grayscale’s ETF delay, which was also approved and then paused, suggesting a pattern in SEC behavior.

4. Speculation suggests the SEC might be stalling to finalize crypto ETF listing standards or to manage internal approval processes, including potential delays to avoid disruptions by a sole Democrat commissioner.

5. The SEC extended its deadline for ruling on in-kind redemptions for Bitwise’s Bitcoin and Ether spot ETFs, indicating ongoing regulatory considerations for crypto ETFs.