On 28 May 2025, the United States Securities and Exchange Commission (US SEC) published a Notice of Designation of Longer Period for further action on proceedings to determine whether to approve or disapprove a proposed rule change to list and trade shares of the bitwise 10 crypto index fund under proposed nyse arca rule 8.800-e (commodity- and/or digital asset-based investment interests) and announced that it has extended the review period for a proposed rule change by NYSE Arca, Inc. to list and trade shares of the Bitwise 10 Crypto Index Fund. The final decision has now been deferred to 31 July 2025. Now US SEC has more time to evaluate the legal, regulatory, and market impact of this landmark crypto-index ETF.
The proposal filed by NYSE Arca on 14 November 2024 seeks approval to list a crypto-based investment product under the newly proposed NYSE Arca Rule 8.800-E, which provides a framework for commodity- and digital asset-based investment interests. The Bitwise 10 Crypto Index Fund aims to track the performance of the ten largest cryptoassets by market capitalisation, offering regulated access to a diversified crypto basket.
This application is being seen as a litmus test for how the US SEC handles multi-asset digital funds and whether the regulatory architecture is ready to support more sophisticated crypto financial products. If approved, it could open the door to a broader class of regulated crypto investment vehicles in the United States.
Timeline of events
- On 14 November 2024, Proposal filed by NYSE Arca with the US SEC (SR-NYSEARCA-2024-98).
- On 03 December 2024, Proposal published in the Federal Register for public comment (Release No. 101775).
- 14 January 2025, US SEC extends the decision period to 3 March 2025 (Release No. 102186).
- On 3 March 2025, proceedings formally initiated under Section 19(b)(2)(B) of the US Exchange Act.
- On 7 March 2025, US SEC published additional notice of proceedings (Release No. 102514).
- On 28 May 2025, final deadline extended to 31.07.2025 (Release No. 34-103140).
The proposal is being evaluated under Section 19(b)(2) of the US Securities Exchange Act of 1934 (15 U.S.C. 78s(b)(2)) and Rule 19b-4 (17 CFR 240.19b-4). It would fall within the framework of NYSE Arca’s proposed Rule 8.800-E, which is designed specifically for listing digital asset-based investment vehicles.
Approval would expand the scope of permissible exchange-traded products (ETPs) linked to cryptoassets. It would also influence how custodians, fund managers, and exchanges structure future crypto ETFs and comply with federal securities laws. The US SEC’s eventual ruling will signal the agency’s expectations for how digital asset ETFs must be structured, governed, and disclosed. Some of the compliance angles include:
- Custody Standards: Will the fund satisfy the SEC’s concerns around secure and compliant crypto custody arrangements?
- Market Integrity: Does the fund include sufficient market surveillance and price verification to guard against manipulation?
- Disclosure Regime: What level of transparency is required around fund methodology, asset weightings, liquidity, and risk disclosures?
- Retail vs. Institutional Access: Will investor classification impact how these products are offered and marketed?
The approval of the Bitwise 10 Crypto Index Fund would regulate novel class of diversified, regulated crypto investment products which will be accepted into the US mainstream. The proposal is the first of its kind to bundle multiple top cryptoassets into a single exchange, traded fund under an US SEC-compliant structure. Approval of Bitwise 10 crypto index fund would legitimise crypto exposure within retirement portfolios, mutual fund allocations, and institutional strategies. It would also mean regulatory confidence in the integrity of the digital asset markets.
By extending the decision deadline to 31 July 2025, the US SEC has bought itself more time. For crypto businesses and market participants, this is the moment to anticipate regulatory expectations, recalibrate internal policies, and prepare for the legal standards that could define the next wave of digital asset innovation.
“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.” —US SEC.
The ongoing activities of the US SEC’s Crypto Task Force, including a series of Crypto roundtables are evolving regulatory approach toward digital assets and offer definitive clarity. Additional crypto-focused roundtables are scheduled throughout June.
(Source: https://www.sec.gov/files/rules/sro/nysearca/2025/34-103140.pdf)
