Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Bitwise’s 10 Crypto ETF Approved but Stayed in Bizarre Move

Bitwise’s 10 Crypto ETF Approved but Stayed in Bizarre Move

CryptopotatoCryptopotato2025/07/22 16:00
By:Author: Wayne Jones

The SEC halted Bitwise’s ETF just days after stopping Grayscale’s mixed crypto fund, marking two sudden reversals this month.

The U.S. Securities and Exchange Commission (SEC) has approved the conversion of Bitwise’s cryptocurrency index fund.

However, the agency later issued a stay order halting the launch pending further internal review.

Regulator Issues Second Reversal This Month

A July 22 filing shows that the SEC had granted an “accelerated approval” for Bitwise’s proposal to convert its Bitwise 10 Crypto Index Fund (BITW) into a spot exchange-traded fund (ETF). In what Bloomberg ETF analyst Nate Geraci referred to as a “bizarre situation,” the regulator then later put the action on hold.

“This letter is to notify you that, pursuant to Rule 431 of the Commission’s Rules of Practice, 17 CFR 201.431, the Commission will review the delegated action,” read the document.

Notably, it marks the second time this month that the financial watchdog has intervened to block such a request. The SEC also stopped the launch of Grayscale’s mixed crypto ETF. That product had received initial approval from the Division of Trading and Markets, but was later stayed by the Commission under the same provisions.

These back-to-back reversals have gotten criticism from analysts. In a Tuesday X post, Geraci insisted , “Both of these should be allowed to convert/uplist ASAP.”

The ETF was set to trade on NYSE Arca as a “Trust Unit”  and includes a mix of top cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), Chainlink (LINK), SUI, Avalanche (AVAX), Polkadot (DOT), and Litecoin (LTC). However, until the order is lifted, BITW shares will remain available only over-the-counter.

Under Rule 431, the SEC can independently review any decision its staff makes under delegated authority. Once invoked, the regulator automatically suspends the decision until it determines whether to uphold, amend, or reverse it. Further, there isn’t a required timeline for this process.

Bitwise currently manages approximately $5.79 billion in assets across its 12 crypto ETFs. The firm’s largest product is its spot Bitcoin ETF, which accounts for roughly $4.79 billion in AUM, while its Ethereum product holds an additional $431 million.

Experts Weigh In

Scott Johnsson, general partner at Van Buren Capital, and Bloomberg Intelligence ETF analyst James Seyffart shared their views on X regarding the SEC’s decision to stop these investment products from going live.

Johnsson suggested that the agency may have approved the conversion with the knowledge that Commissioner Caroline Crenshaw, who has been critical of crypto, would later intervene, or that the timing was aligned with the deadlines of both proposals.

“Both explanations are the kind of funny business that shouldn’t really be happening under Atkins,” he wrote.

Seyffart agreed, suggesting the SEC was probably stalling for time as it worked on finalizing its generic listing standards due by October 2025.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

2025 TGE Survival Ranking: Who Will Rise to the Top and Who Will Fall? Complete Grading of 30+ New Tokens, AVICI Dominates S+

The article analyzes the TGE performance of multiple blockchain projects, evaluating project performance using three dimensions: current price versus all-time high, time span, and liquidity-to-market cap ratio. Projects are then categorized into five grades: S, A, B, C, and D. Summary generated by Mars AI This summary was generated by the Mars AI model, and the accuracy and completeness of its content are still being iteratively updated.

MarsBit2025/11/28 16:26
2025 TGE Survival Ranking: Who Will Rise to the Top and Who Will Fall? Complete Grading of 30+ New Tokens, AVICI Dominates S+

Mars Finance | "Machi" increases long positions, profits exceed 10 million dollars, whale shorts 1,000 BTC

Russian households have invested 3.7 billion rubles in cryptocurrency derivatives, mainly dominated by a few large players. INTERPOL has listed cryptocurrency fraud as a global threat. Malicious Chrome extensions are stealing Solana funds. The UK has proposed new tax regulations for DeFi. Bitcoin surpasses $91,000. Summary generated by Mars AI. The accuracy and completeness of this summary are still being iteratively updated by the Mars AI model.

MarsBit2025/11/28 16:26
Mars Finance | "Machi" increases long positions, profits exceed 10 million dollars, whale shorts 1,000 BTC

How much is ETH really worth? Hashed provides 10 different valuation methods in one go

After taking a weighted average, the fair price of ETH exceeds $4,700.

ForesightNews 速递2025/11/28 15:05
How much is ETH really worth? Hashed provides 10 different valuation methods in one go

Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost

People tend to overestimate what can happen in two years, but underestimate what can happen in ten years.

深潮2025/11/28 14:53
Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost