Approved Launch of Bitwise's 10 Cryptocurrency ETF Despite Unexpected Decision
The U.S. Securities and Exchange Commission (SEC) has placed a hold on the conversion of the Bitwise 10 Crypto Index Fund to a spot exchange-traded fund (ETF), following a swift reversal of the initial approval granted on July 22, 2025.
The Bitwise 10 Crypto Index Fund, trading under the ticker BITW, includes a variety of prominent cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana, Cardano, and others. The initial approval by the SEC's Division of Trading and Markets was quickly rescinded by Assistant Secretary Sherry R. Haywood, invoking Rule 431, which allows the full Commission to review and potentially reverse delegated decisions.
This move is part of a broader regulatory uncertainty surrounding crypto-related ETFs, mirroring a similar reversal involving Grayscale's Digital Large Cap fund ETF conversion. The SEC has not provided detailed reasons for the reversal, adhering to its policy of non-comment on ongoing deliberations.
The reversal and subsequent stay have caused market jitters and speculation that one or more SEC commissioners might be behind halting the conversions despite the initial approval. Analysts, including James Seyffart, Bloomberg Intelligence ETF analyst, and Scott Johnsson, general partner at Van Buren Capital, have suggested that the SEC might be stalling for time as it works on finalizing its generic listing standards due by October 2025.
However, neither Johnsson nor Seyffart's suggestions imply direct confirmation from the SEC regarding their theories. Until the SEC completes its review and issues a final decision, the ETF conversion remains effectively paused.
The Bitwise ETF was set to trade on NYSE Arca as a "Trust Unit". Bitwise manages approximately $5.79 billion in assets across its 12 crypto ETFs, with the Bitwise Ethereum product holding an additional $431 million in assets under management (AUM).
The SEC's actions have received criticism from analysts, adding to the regulatory uncertainties surrounding the cryptocurrency market. The SEC can independently review any decision made under delegated authority, as per Rule 431, and the review process does not have a required timeline.
[1] SEC Reverses Approval of Bitwise Crypto ETF Conversion, CoinDesk, July 22, 2025. [2] SEC Halts Bitwise Crypto ETF Conversion, Wall Street Journal, July 22, 2025. [3] SEC Stalls Bitwise Crypto ETF Conversion, Bloomberg, July 22, 2025. [4] SEC Freezes Bitwise 10 Crypto Index Fund's ETF Conversion, Forbes, July 22, 2025.
[1] The SEC has placed a hold on the conversion of the Bitwise 10 Crypto Index Fund to a spot exchange-traded fund (ETF), following a swift reversal of the initial approval. The fund includes cryptocurrencies like Bitcoin, Ethereum, and others.
[2] The Bitwise ETF, trading under the ticker BITW, was set to trade on NYSE Arca as a "Trust Unit". Bitwise manages $5.79 billion in assets across its 12 crypto ETFs, with the Ethereum product holding an additional $431 million in assets under management (AUM).
[3] The SEC's actions have received criticism from analysts, adding to the regulatory uncertainties surrounding the cryptocurrency market. Analysts suggest that the SEC might be stalling for time as it works on finalizing its generic listing standards due by October 2025.
[4] The reversal and subsequent stay have caused market jitters, with speculation that one or more SEC commissioners might be behind halting the conversions despite the initial approval. This move is part of a broader regulatory uncertainty surrounding crypto-related ETFs, mirroring a similar reversal involving Grayscale's Digital Large Cap fund ETF conversion.
