The U.S. Securities and Exchange Commission (SEC) has paused the planned conversion of Bitwise’s diversified fund into an exchange-traded fund (ETF), introducing a delay for potential investor access to XRP and other altcoins through this vehicle. This decision reflects the regulator’s cautious approach while formulating a framework specifically for spot altcoin ETFs.
Market analysts expressed surprise at the SEC’s reversal, noting its unexpected nature. The suspension shares similarities with the agency’s earlier halt on the Grayscale Digital Large Cap Fund ETF process.
Despite this regulatory setback, trading activity in XRP futures contracts on the Chicago Mercantile Exchange (CME) experienced a significant surge. This uptick suggests sustained market interest and resilience.
A separate Bitwise filing for a dedicated spot XRP ETF remains under SEC review. Market sentiment analysis points to high expectations for approval, with prediction markets currently indicating an 85% probability of the SEC approving a spot XRP ETF by October.
The SEC’s ongoing review process aims to establish comprehensive operational guidelines for spot ETFs holding digital assets beyond Bitcoin, a framework anticipated to be finalized later this year.