The U.S. Securities and Exchange Commission (#SEC ) has taken another significant step in addressing the growing interest in cryptocurrencies. Asset management giant Bitwise has received official approval from the SEC for its application to convert its Bitwise 10 Crypto Index Fund into a spot exchange-traded fund (ETF).
✅ Which Cryptocurrencies are included in the Fund?
Bitwise's ETF-convertible fund offers a broad selection of 10 major cryptocurrencies. The fund consists of the following:
Bitcoin (BTC)
Ethereum (ETH)
Sui (SUI)
Chainlink (LINK)
Litecoin (LTC)
Polka Dot (DOT)
Avalanche (AVAX)
This ETF will combine the top 10 digital assets in the crypto market, offering diversified crypto investments through a single product. The index operates on a weighted system based on market segments.
📉 Initial Impact: Price Silence
While the SEC's revelation was significant news for the market, no significant price movement was observed in the cryptocurrencies included in the fund in the initial minutes. Analysts suggest this is because the ETF has not yet resumed trading.
📊 Medium-Term Impact Expected
According to experts, the fund's active launch could lead to a significant increase in trading volumes for these 10 cryptocurrencies. Spot ETFs, an investment vehicle that provides easier access to institutional knowledge, are said to offer an attractive entry point, particularly for registration in the US.
⛔Shown! SEC Puts New Curb Approach
Although the SEC has approved the application, another obstacle has emerged before the fund can begin operating. According to Bloomberg ETF analyst James Seyffart, similar to the approval granted to Grayscale's GDLC fund, Bitwise's fund has been temporarily suspended at the request of one or more SEC members.
Bitwise's 10 Index Funds have received approval, but as with Grayscale's GDLC fund earlier this month, Bitwise's participation in the ETF has been halted at the request of one or more SEC commissioners. In other words, the fund cannot yet be considered an ETF. –James Seyffart
🔁 First Grayscale, Now Bitwise: A New Link to the Hybrid ETF Trend
The Bitwise ETF clone is the second hybrid ETF clone to follow the July 1st conversion of Grayscale's fund, which included BTC, ETH, XRP, SOL, and ADA, into a spot ETF. This development signals the SEC's adoption of a softer stance on hybrid cryptocurrency baskets.
📌 Conclusion: Are Institutional Waves Coming?
Bitwise's ETFs could herald a new era for cryptocurrencies. These institutionally offered products, in particular, will further solidify cryptocurrencies' place in the traditional financial world.
While the stop-loss cancellation delays the fund's start of trading, analysts believe it's only a temporary hold. Once complete, Bitwise could make the ETF accessible to a much broader investor base.
