Bitwise Crypto Index Fund: SEC Approval Paused

The U.S. Securities and Exchange Commission (SEC) recently approved the conversion of Bitwise's cryptocurrency index fund, only to swiftly pause the action. On Tuesday, the SEC's Division of Trading and Markets provided "accelerated approval" of the Bitwise 10 Crypto Index ETF, as stated in a filing. However, Assistant Secretary Sherry R. Haywood announced that the SEC would revisit this decision. "This letter serves to inform you that, under Rule 431 of the Commission’s Rules of Practice, 17 CFR 201.431, the Commission will review the delegated action," Haywood noted. "As per Rule 431(e), the order dated July 22, 2025, is paused until further notice from the Commission." Bitwise has yet to respond to requests for comment, while an SEC spokesperson reiterated that they do not comment on individual companies or filings. The Bitwise 10 Crypto Index Fund (ticker: BITW) offers exposure to Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), Polkadot, and others based on market capitalization, according to its website. The SEC's decision to pause the Bitwise approval echoes its earlier indecision regarding the conversion of the Grayscale Digital Large Cap Fund LLC. This fund, which trades over the counter for accredited investors, is mainly composed of Bitcoin (nearly 80%) and Ethereum (around 11%), with other cryptocurrencies like Solana, Cardano, and XRP making up smaller percentages. While the SEC had approved Grayscale's proposal for another closed-end fund to convert to an ETF quickly, they, too, placed a hold on this decision the following day. Grayscale has expressed its commitment to pursuing a successful listing despite these challenges. Moreover, the SEC is evaluating various cryptocurrency ETFs amidst a potentially more favorable regulatory atmosphere for crypto following President Donald Trump's inauguration in January, with proposals that include funds tracking cryptocurrencies such as SOL and DOGE. Disclaimer: The Block is an independent media outlet providing news and research. As of November 2023, Foresight Ventures is a major investor in The Block and invests in other crypto ventures. Bitget is an anchor LP for Foresight Ventures. The Block operates independently to provide objective and timely information regarding the cryptocurrency sector. This article is for informational purposes and is not intended as legal, tax, investment, or financial advice.