SEC Stays Bitwise Crypto Index Fund Approval

• Lyla Velez
• July 23, 2025
• Policy
• 0 Comments

Bitwise Investment Advisers’ 10 Crypto Index Fund, notably involving BTC, ETH, and XRP, has seen its ETF conversion process placed on hold by the U.S. SEC as of July 22, 2025.

Bitwise’s ETF conversion pause by the SEC affects crypto market flow, pending clarity on regulatory concerns over non-approved crypto holdings.

Bitwise Investment Advisers

Bitwise Investment Advisers, sponsoring the 10 Crypto Index Fund, focuses on converting the fund to an ETF, including a diverse mix of digital assets. As of July 2025, the SEC has placed the ETF approval in a stayed status, pending further regulatory review. The ETF includes a broad range of cryptocurrencies such as Bitcoin, Ethereum, and XRP, with a fund size of $1.68 billion.

The fund’s asset mix mainly consists of Bitcoin and Ethereum, managed by Coinbase as the primary custodian, and BNY Mellon handling administrative duties. Despite initial approval, broader regulatory hesitations over non-approved assets led to the hold. Market participants, particularly institutional investors, await clarity, as the ETF approval remains in a stayed status. The stay mirrors past decisions such as the Grayscale ETF.

“SEC’s stay order on Bitwise ETF is bizarre.” – Nate Geraci, President, The ETF Store

The potential economic impact depends on the lifting of the stay, which could result in increased institutional flows into key assets like BTC, ETH, and other altcoins. The regulatory caution indicates ongoing challenges for diversified crypto ETFs. Effects on liquidity might be significant once the stay is lifted, enhancing access to diversified crypto investments.

The regulatory outcome remains uncertain, highlighting SEC’s cautious stance towards ETFs comprising non-secured crypto assets such as XRP. Future market dynamics hinge on the resolution of such regulatory challenges. Anticipated updates could drive market shifts based on ETF launch status, reflecting historical trends in similar ETF approvals. Industry reactions remain focused on the SEC’s next steps, as voiced by opinions from key figures questioning regulatory decisions.