SEC Delays Decision on Bitwise Crypto Index Fund ETP Until March
The SEC delays its decision on converting Bitwise Crypto Index Fund (BITW) to an exchange-traded product. Final decision expected by March 3.
The U.S. Securities and Exchange Commission (SEC) has pushed back its decision on whether to approve the Bitwise 10 Crypto Index Fund (BITW) as an exchange-traded product (ETP). The new deadline for the SEC’s ruling is March 3, which will determine if the $1.4 billion fund can move from its current over-the-counter (OTC) trading status to a fully regulated ETP.
The proposal, filed in November, seeks to convert BITW into an ETP under a new rule designed for investment products based on digital assets. While the SEC has not provided a specific reason for the delay, it has stated that more time is needed to evaluate the rule change and the potential impact of the proposal.
BITW currently holds 10 different cryptocurrencies, with Bitcoin making up 72.7% of the fund, followed by Ethereum and XRP. If approved, the conversion would help address pricing issues the fund faces in OTC markets, where investors often deal with lower liquidity and higher risks, including potential stock manipulation.
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At present, BITW trades at $60.95, but its actual net value (NAV) is $71.72, creating a gap in pricing that could be reduced if it’s approved for exchange-traded status. An ETP structure would also help solve these pricing issues by introducing a system that allows for more efficient buying and selling.
The SEC’s review process for new financial products like BITW typically includes a 45-day extension, and the March deadline will give regulators more time to assess how this crypto-focused fund would work within an exchange-traded setup. The decision will be a key test for the future of multi-crypto funds in traditional financial markets.
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