SEC Postpones Decision on Bitwise’s Crypto Index ETF Until March 3

The US Securities and Exchange Commission (SEC) has delayed its decision on whether to approve Bitwise’s crypto index ETF, Bitwise 10 Crypto Index Fund (BITW), until March 3. The fund, which tracks the performance of the 10 largest digital assets based on market capitalization, has been trading on the QTCQX Best Market since 2017.

Crypto-Friendly Administration and SEC Commissioner

With the new administration taking office, the decision may now rest in the hands of incoming SEC Commissioner Paul Atkins. President-elect Donald Trump expressed his support for digital assets and innovations, stating,

“He recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before.”

This could bode well for the approval of Bitwise’s index fund.

Opposition and Concerns

However, not everyone is optimistic about the potential approval. Bartlett Naylor, a financial policy advocate at Public Citizen, has expressed concerns over the implications of the industry pouring an unprecedented $119 million into political campaigns. He believes these donations come with strings attached and that an overtly pro-crypto SEC would undermine investor protections.

Naylor’s concerns shouldn’t be discredited outright, given the industry’s history of scams and risk management practices. However, his views also reveal an ideological opposition to crypto, which may prevent him from recognizing the industry’s growth and changes since 2021.

Regulatory Framework and Consumer Protections

The Financial Innovation and Technology for the 21st Century Act, which passed in Congress and is waiting to be voted on in the Senate, could provide a robust regulatory framework with strict registration and compliance requirements. This includes consumer protection safeguards that demand regulators have access to source code, transaction history, economic models, and more.

The Future of Crypto Indexes

Any regulation that prioritizes integrating digital assets into the mainstream while supporting innovation and providing consumer protections should be broadly welcomed. Crypto indexes like Bitwise can cater to both retail and institutional users, simplifying the onboarding process for non-crypto natives while providing an effective tool to mitigate risk for a volatile asset class.

Platforms like J’JO Finance offer automated investing in the top 35 digital assets based on market capitalization, providing investors with reliable assets at minimal risk. As the industry gradually onboards new adopters, crypto indexes will remain beneficial.

Tips for investors looking to explore crypto indexes:

  • Look for regulated and compliant platforms
  • Understand the underlying assets and risks
  • Diversify your portfolio with a range of assets
  • Consider automated investing options

Stay Informed with Global Crypto News

For more news and insights on the world of cryptocurrencies, investing, and finance, visit Global Crypto News. Stay up-to-date on the latest developments and trends in the industry, and explore more articles on crypto indexes, regulation, and innovation.

Post Views: 0