SEC Reverses Bitwise ETF Approval Just Hours After Greenlight

In a surprising move on Tuesday, the U.S. Securities and Exchange Commission (SEC) initially approved Bitwise’s proposal to convert its cryptocurrency index fund into a full-fledged exchange-traded fund (ETF)—only to halt the decision just hours later.

According to the information, the SEC’s Division of Trading and Markets granted “accelerated approval” for the Bitwise 10 Crypto Index ETF, which tracks major digital assets such as Bitcoin, Ethereum, Solana, XRP, and Polkadot on a market cap-weighted basis.

However, the commission quickly hit pause. Assistant Secretary Sherry R. Haywood issued a stay under Rule 431, notifying that the decision would now undergo a full Commission-level review. “The July 22, 2025 order is stayed until the Commission orders otherwise,” the filing read.

Bitwise and SEC remain silent as uncertainty grows

Bitwise has yet to comment publicly on the SEC’s reversal. Meanwhile, an SEC spokesperson declined to discuss details about the decision or Bitwise’s application, citing standard protocol. The fund currently trades under the ticker BITW and is known for providing diversified crypto exposure to institutional and retail investors alike.

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The unexpected about-face echoes the SEC’s similar delay earlier this month regarding Grayscale’s attempt to convert its Digital Large Cap Fund into an ETF. Both cases suggest that while regulatory momentum is building, the path to crypto ETF approvals remains complex and politically sensitive.

For now, the future of Bitwise’s ETF remains in limbo—approved by one arm of the SEC, but awaiting final judgment from the full Commission.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.