USDCrypto ETF Developments: SEC Delays Bitwise, Osprey Targets Spot Approval
SEC Delays Bitwise 10 Crypto ETF Decision to March 2025
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the Bitwise 10 Crypto Index ETF, extending the review period to March 3, 2025, from the original deadline of January 17, 2025. The fund aims to track major cryptocurrencies by market capitalization, including Bitcoin, Ethereum, and Solana, and has been managed by Bitwise since 2018. The proposal, submitted by NYSE Arca on November 14, 2024, received no public comments after its publication on December 3.
Analysts anticipated this delay due to the SEC's cautious approach, with potential implications for other crypto ETFs pending approval. The decision is particularly significant as it could signal a major shift in cryptocurrency regulation and investment vehicles, enabling broader market participation. Additionally, Bitwise has filed for a new "Bitcoin Standard Corporations ETF," focusing on companies holding substantial Bitcoin reserves, emphasizing the SEC's balance between innovation and investor protection.
Osprey Funds Plans to Convert Bitcoin Trust into Spot ETF After Bitwise Deal Fails
Osprey Funds intends to convert its Osprey Bitcoin Trust (OBTC) into a spot Bitcoin exchange-traded fund (ETF) following the termination of a pending acquisition deal with Bitwise due to regulatory hurdles. The firm plans to file a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) imminently, with expectations for submission by the end of January 2025. Currently, OBTC manages $181 million in assets, tracking Bitcoin's price without holding the actual asset.
Osprey’s shares have seen significant growth, up 151% over the past year, although still below their all-time high of $50. The competitive landscape includes 32 Bitcoin ETFs in total in the U.S., with only 11 being spot ETFs, reflecting active market developments. CEO Greg King emphasizes the firm's commitment to achieving ETF status for its investors, underscoring this initiative as the most secure path forward.
VanEck Files SEC Application for "Onchain Economy" ETF
Asset manager VanEck submitted an application to the U.S. Securities and Exchange Commission (SEC) for the “Onchain Economy” exchange-traded fund (ETF). The proposed fund aims to invest at least 80% of its assets in "Digital Transformation Companies," which include software developers, mining companies, crypto exchanges, payment firms, and other businesses in the crypto sector. The investment approach will utilize fundamental analysis, market trends, strategic positioning, and valuation to select these companies.
Importantly, the fund will not hold digital assets directly but will instead invest in digital asset instruments such as commodity futures contracts. VanEck's application reflects a growing trend among financial firms to file crypto ETF applications in anticipation of a more favorable regulatory environment, following the reelection of President-elect Donald Trump, which is expected to influence the SEC's stance on crypto investments significantly.
Revolut Launches Zero-Commission ETF Investment Plans Across Europe
On January 16, 2025, Revolut announced the launch of commission-free ETF investment plans across the European Economic Area (EEA), aiming to make investments more accessible. The platform allows users to set up automatic purchases on over 300 ETFs, with a minimum investment of only €1. This initiative follows a significant growth trend in Europe's ETF market, where 10.8 million investment plans were activated monthly in 2024.
A recent survey indicated that 49% of Italian investors prioritize low and transparent fees when selecting service providers. The absence of fees is expected to enhance the compounding effect and promote long-term growth for investors. With over 50 million customers worldwide, Revolut aims to empower users by simplifying wealth creation and enhancing financial decision-making through a smooth user experience and automated portfolio management solutions, as stated by Rolandas Juteika, the Head of Wealth and Trading EEA at Revolut.
This article has been refined and enhanced by ChatGPT.
