The U.S. Securities and Exchange Commission (#SEC ) has taken another important step in addressing the growing interest in cryptocurrencies. Asset management giant Bitwise has received official approval from the SEC for its filing to convert the Bitwise Crypto 10 Index Fund into an exchange-traded fund (ETF).
✅ Which cryptocurrencies are included in the fund?
Bitwise's convertible ETF fund offers a wide selection of 10 major cryptocurrencies. The fund includes the following types:
Bitcoin (BTC)
Ethereum (ETH)
Ripple ($XRP )
Solana ($SOL )
Cardano ($ADA )
Sui (SUI)
Chainlink (LINK)
Litecoin (LTC)
Polka Dot (DOT)
Avalanche (AVAX)
This ETF will combine the top 10 digital assets in the cryptocurrency market, providing diverse cryptocurrency investments through a single product. The index operates on a weighted system based on market segments.
📉 Initial impact: Price remains silent
While the SEC's disclosure is significant news for the market, no substantial price movement was observed in the cryptocurrencies included in the fund in the first few minutes. Analysts believe this is due to the ETF not yet being traded.
📊 Expected medium-term impact
According to experts, the proactive launch of the fund could lead to a significant increase in trading volume for these 10 cryptocurrencies. Spot ETFs, an investment vehicle providing easier access to institutional knowledge, are believed to offer an attractive entry point, especially for registration in the U.S.
⛔Displayed! The SEC is adopting a new restrictive approach
Although the SEC has approved the filing, another hurdle has arisen before the fund can begin operations. According to ETF analyst James Seyffart from Bloomberg, similar to the approval granted to Grayscale's GDLC fund, Bitwise's fund has been paused at the request of one or more SEC members.
The Bitwise 10 Index Funds have received approval, but like Grayscale's GDLC fund earlier this month, Bitwise's involvement in the ETF has been paused at the request of one or more SEC commissioners. In other words, the fund cannot yet be considered an ETF. –James Seyffart
🔁 First was Grayscale, now Bitwise: A new link to the hybrid ETF trend
Bitwise's ETF replica is the second hybrid ETF following Grayscale's fund conversion on July 1, which includes BTC, ETH, XRP, SOL, and ADA into a spot ETF. This development signals the SEC's acceptance of a softer stance towards hybrid cryptocurrency baskets.
📌 Conclusion: Is an institutional wave coming?
Bitwise's ETFs may signal a new era for cryptocurrencies. These products offered to institutions, in particular, will further solidify the position of cryptocurrencies in the traditional financial world.
While the cancellation of the stop-loss order delayed the fund's trading start, analysts believe it is just a temporary delay. Once finalized, Bitwise could make the ETF available to a wider investor base!
