SEC Delays Decision on Bitwise Crypto ETFs
The United States Securities and Exchange Commission (SEC) has extended its deadline for ruling on in-kind redemptions for Bitwise’s spot Bitcoin and Ether ETFs on NYSE Arca. This extension gives the SEC more time to evaluate the proposed rule change, with the decision period now potentially lasting up to 90 days.
Understanding In-Kind Redemptions
In-kind redemptions allow investors to exchange ETFs directly for the underlying assets—here, Bitcoin or Ether—instead of converting to cash. This approach may carry significant tax implications, making it a critical consideration for investors.
SEC’s Track Record with Crypto Decisions
The SEC’s latest delay aligns with its history of postponing rulings on cryptocurrency-related products. Notably, the regulator recently faced criticism from Grayscale over delays in approving its Digital Large Cap ETF, with allegations of missed statutory deadlines.
Evolving Regulatory Stance
Under the leadership of SEC Chair Paul Atkins, the agency has signaled a shift toward fostering innovation in the cryptocurrency sector. Atkins has prioritized regulatory clarity and the development of new financial products, marking a departure from previous enforcement-heavy approaches.
