US SEC Delays Decision on Bitwise Bitcoin and Ethereum ETF In-Kind Redemptions

According to a report by Jinse Finance, the U.S. Securities and Exchange Commission (SEC) has postponed its decision on the Bitwise Bitcoin ETF Trust and the Bitwise Ethereum ETF physical redemption mechanism, as stated in a document released on Wednesday. This move is the latest sign that U.S. regulators remain cautious, even as the political climate surrounding cryptocurrencies improves. The document indicates that the SEC will make a ruling by September 8, at which point it may approve, reject the application, or choose to further review the matter. The document states: "The Commission finds it necessary to designate a longer period to take action on the proposed rule change so that it has sufficient time to consider the proposed change and the issues raised therein." The so-called physical redemption allows investors to directly exchange ETF shares for the underlying tokens held by the fund, thereby avoiding certain tax liabilities. This mechanism has long been a sensitive topic, with regulators expressing concerns about its complexity and security, while ETF issuers are eager to offer the same features as traditional non-crypto ETFs.