23.07.2025 16:51

The Securities and Exchange Commission (SEC) initially approved, then swiftly suspended, the conversion of the Bitwise 10 Crypto Index Fund into a spot exchange-traded fund (ETF). This surprising reversal affects a basket of ten cryptocurrencies, including prominent players like Bitcoin, Ethereum, and XRP, along with Solana, Cardano, Sui, Chainlink, Litecoin, Polkadot, and Avalanche.

This approval, granted initially via the SEC's Bureau of Trading and Markets under a delegated authority process, marked the second instance of a hybrid cryptocurrency ETF approval. The first, Grayscale's similar fund, also faced a subsequent suspension, highlighting the SEC's inconsistent approach to the burgeoning cryptocurrency market.

The SEC's decision to re-evaluate the Bitwise ETF approval stems from its internal review process, specifically invoking 17 CFR 201.431. This rule allows the Commission to review actions taken by its delegated authorities, effectively overriding the initial approval granted on July 22, 2025. The suspension was announced, delaying the ETF listing until further notice from the Commission Secretariat.

This ongoing uncertainty surrounding ETF approvals underscores the regulatory challenges facing the cryptocurrency industry. The SEC's actions leave investors and market participants in a state of flux, prompting a need for cautious observation and a deeper understanding of the evolving regulatory landscape. Information obtained from internet sources should be independently verified before making any investment decisions.