The U.S. Securities and Exchange Commission (SEC) has approved the conversion of the Bitwise Crypto Index Fund into a full ETF, but the launch is delayed due to a suspension order from the regulator.
This ETF focuses on diversifying the cryptocurrency portfolio, particularly altcoins, with a significant ratio of Bitcoin and Ethereum. Despite being approved, the suspension order raises questions among investors and experts about the future of the product.
MAIN CONTENT
The Bitwise ETF will track a diverse cryptocurrency basket, including Bitcoin, Ethereum, and many prominent altcoins.
The SEC's application of a suspension order has delayed the ETF launch, causing controversy within the industry.
Altcoins are growing as Bitcoin's dominance decreases, creating new investment opportunities as ETFs are allowed to trade.
What is an altcoin diversified ETF and what does the fund consist of?
The Bitwise Crypto Index Fund is designed as an ETF to track a leading cryptocurrency portfolio, including Bitcoin at 78.72%, Ethereum 11.10%, XRP 4.97%, and altcoins like Solana, Cardano, Chainlink, SUI, Avalanche, Polkadot, and Litecoin. This allocation is based on SEC regulations, requiring at least 85% of assets to be cryptocurrencies approved for exchange-traded products like Bitcoin and Ethereum.
This is an important step to help investors access a diverse range of cryptocurrency assets through a trading mechanism similar to traditional stocks, ensuring liquidity and convenience when the fund is officially traded.
Why did the SEC delay the launch of the Bitwise ETF after it was approved?
Despite being approved, the SEC has issued a suspension order under Rule 431(e), halting the ETF launch process. This decision came as a surprise and caused a strong reaction within the cryptocurrency finance community.
"This delay is strange and contradicts the approval that was granted. Both Bitwise and similar products should be allowed to operate," Nate Geraci – President of The ETF Store (2024), emphasized.
Nate Geraci, President of The ETF Store, stated on social platform X, June 2024.
The suspension order not only slows down the accessibility of diverse cryptocurrency funds for investors but also raises market skepticism about transparency and the stability of U.S. digital asset management policies.
How have altcoins moved while the ETF is stalled?
The stalling of the ETF does not affect the strong growth trend of altcoins. In the past 30 days, Bitcoin's market dominance has dropped from 65% to 60%, indicating that capital is shifting towards high-growth potential altcoins.
Ethereum up 26%
Dogecoin up 40%
XRP up 22%
Cardano up 23%
"Altcoins are gaining momentum despite the lack of direct support from institutional investment products like ETFs. The Altcoin Season Index has surged from 35 to 50, signaling an important transition phase," Kyle Chassé – Cryptocurrency Analyst, 2024.
Kyle Chassé, Cryptocurrency Analyst, stated on X, June 2024.
This is a sign that individual and institutional investors are seeking new opportunities in the Layer-1 market and altcoins, ready to embrace volatility and the potential for higher returns.
Why is the Bitwise ETF significant at this moment?
The Bitwise ETF will help investors simplify access to potential altcoins like XRP and Solana just as market trends begin to favor these assets. With Bitcoin hovering below $120,000, capital is shifting to seek growth from Layer-1 Tokens.
Currently, the ETF is only raising capital through the OTC market and has not been approved for listing on a national exchange. If the SEC lifts the suspension, this ETF will broaden access for both individual and institutional investors, facilitating cryptocurrency portfolio allocation.
Frequently Asked Questions
What is the Bitwise ETF and what are its main coin components?
The Bitwise ETF is an exchange-traded fund that tracks a cryptocurrency portfolio consisting of Bitcoin, Ethereum, XRP, and several prominent altcoins like Solana, Cardano, and Avalanche.
Why did the SEC suspend the launch of the Bitwise ETF despite its approval?
The SEC has applied a temporary suspension under Rule 431(e) to further consider legal and risk aspects, delaying the ETF launch.
How do altcoins move when the ETF is stalled?
Altcoins have shown strong growth, with capital shifting away from Bitcoin, reflecting a more diverse investment trend in the cryptocurrency market.
How will the ETF launch impact the cryptocurrency market?
The ETF launch will expand investment opportunities, increase liquidity, and improve access to diverse cryptocurrencies for global investors.
How can investors access the Bitwise ETF currently?
Currently, the ETF is only trading through the OTC market and has not been officially listed on the national stock exchange due to the SEC's suspension.
Source: https://tintucbitcoin.com/sec-phe-duyet-xrp-etf-tam-dung-giao-dich/
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