On 3 March 2025 , the United States Securities and Exchange Commission (US SEC) announced the initiation of proceedings to determine whether to approve or disapprove a proposed rule change filed by NYSE Arca, Inc. (NYSE Arca). The decision was published by US SEC in “Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting 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),” issued under Release No. 34-102514; File No. SR-NYSEARCA-2024-98. The proposal seeks to list and trade shares of the Bitwise 10 Crypto Index Fund (Trust), tracking a portfolio of major digital assets under the newly proposed NYSE Arca Rule 8.800-E.
The proposal was originally filed by NYSE Arca on 14 November 2024 under United States Securities Exchange Act of 1934, Section 19(b)(1) and Rule 19b-4. The US SEC published it for public comment in the Federal Register on 03 December 2024. Subsequently, on 14 January 2025, the US SEC extended the review period under United States Securities Exchange Act, Section 19(b)(2), setting 03 March 2025 as the deadline for a decision. The US SEC has now decided to institute proceedings under Section 19(b)(2)(B) to further evaluate the rule change and its compliance with regulatory requirements.
The proposed rule change aims to introduce NYSE Arca Rule 8.800-E, allowing for the listing and trading of securities backed by digital assets, commodities, and derivatives. Under this framework, the Bitwise 10 Crypto Index Fund will track a diversified portfolio of ten major cryptocurrencies, with assets held in custody by Coinbase Custody Trust Company, LLC. The Bank of New York Mellon will serve as the custodian for cash holdings, administrator, and transfer agent. The index is managed by Bitwise Index Services, LLC, an affiliate of the Bitwise Investment Advisers, LLC (Sponsor). The Trust will rebalance monthly based on free-float market capitalisation of digital assets, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP (XRP), Cardano (ADA), Avalanche (AVAX), Chainlink (LINK), Bitcoin Cash (BCH), Polkadot (DOT), and Uniswap (UNI).
The US SEC’s decision to institute proceedings does not imply a conclusion but seeks further evaluation of the proposed rule change’s compliance with United States Securities Exchange Act, Section 6(b)(5), which mandates that exchange rules must be designed “to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest.”
The US SEC has invited public comments on whether the proposed listing meets these regulatory standards, with a rebuttal period extending beyond the initial submission deadline.
(Source: https://www.sec.gov/files/rules/sro/nysearca/2025/34-102514.pdf)
