Bitwise is not the first issuer to want regulatory clarity on in-kind redemption. Other proposals by BlackRock, Fidelity, VanEck, WisdomTree, and 21Shares also seek to replicate the traditional ETF model to digital asset funds. On Tuesday, the SEC extended its review of the Ethereum ETF in-kind model proposed by BlackRock by shifting its deadline date to August 26.
The influx of applications coincides with a shift in under the current administration. President Donald Trump’s crypto-friendly policy environment has reshaped expectations, encouraging issuers to introduce more advanced fund mechanisms. Former SEC Commissioner Hester Peirce recently admitted that crypto ETF products “are definitely coming at some point,” implying long-term eventual regulatory support.
However, SEC officials continue to exercise caution amid concerns about asset security, systemic risk, and market manipulation. While political leadership and internal appointments, including the arrival of pro-crypto Chairman Paul Atkins, signal a softer approach, procedural delays indicate that approval will not be rushed.
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