The Securities and Exchange Commission (SEC) has halted the approval process for Bitwise’s proposed 10 Crypto Index ETF, signaling continued regulatory challenges for cryptocurrency investment products. This delay reflects persistent uncertainties in the U.S. crypto ETF landscape amid ongoing agency scrutiny.
The Bitwise 10 Crypto Index Fund would track a market-cap-weighted portfolio of the top ten cryptocurrencies, with Bitcoin and Ethereum collectively comprising nearly 90% of its holdings. The SEC’s pause mirrors similar delays recently encountered by Grayscale’s fund proposals, indicating a broad pattern of regulatory caution.
Regulators appear particularly concerned about ETFs incorporating staking mechanisms, evidenced by the SEC’s earlier postponement of Bitwise’s Ethereum staking ETF application. Observers note these actions suggest an effort to develop a unified regulatory framework for crypto ETFs, attempting to balance innovation with investor protections.
Industry analysts highlight that regulatory complexity and the absence of clear guidelines remain major obstacles for U.S. crypto ETFs. The SEC’s cautious approach underscores a deliberate pace in evaluating cryptocurrency-based financial products despite growing institutional interest.