The U.S. Securities and Exchange Commission (SEC) has formally extended the review period for Bitwise’s proposals concerning in-kind redemptions for its spot Bitcoin and Ethereum exchange-traded funds (ETFs). The decision has been postponed until September 8.
This extension reflects the SEC’s ongoing cautious approach to crypto-related ETF applications. It follows a pattern of measured review periods observed with similar filings, including proposals for other funds like BlackRock’s iShares Ethereum Trust.
Amidst the regulatory news, market activity showed contrasting trends. Bitcoin traded near the $118,900 level, marking a modest 1.1% increase over the past 24 hours. Conversely, Ethereum demonstrated stronger performance, surging approximately 9% to trade around $3,360.
Approval of Bitwise’s in-kind redemption proposal, should it eventually be granted, is seen as a potential catalyst for more sophisticated crypto ETF structures. Such structures could offer investors enhanced tax efficiency compared to current cash redemption models.
The SEC’s final ruling, expected by September 8, will be closely monitored by market participants. Its outcome is anticipated to have significant implications for the future development and structure of cryptocurrency ETFs in the United States, setting an important precedent within the evolving regulatory landscape.