The post Bitwise 10 Crypto Index Fund conversion stayed by SEC hours after approval appeared on BitcoinEthereumNews.com.
Shortly after approving the Bitwise 10 Crypto Index Fund conversion, the U.S. Securities and Exchange Commission paused the decision for a full Commission review. So, why is the SEC halting approvals? Summary Bitwise’s ETF approval was halted just hours after clearance, leaving its multi-asset crypto fund in regulatory limbo. Grayscale’s GDLC faced a similar stay earlier this month, prompting the firm to warn that the delay could harm investors. The BITW index fund holds a market-cap-weighted basket of ten leading crypto assets, led by Bitcoin and Ethereum. On July 22, the SEC’s Division of Trading and Markets granted accelerated approval for Bitwise’s proposal to convert its over-the-counter crypto index fund into a spot exchange-traded fund. The move would have allowed the fund to list and trade on NYSE Arca under amended Rule 8.500‑E, which governs Trust Units. The approval was seen as a milestone for multi-asset crypto ETFs in the U.S. However, later the same day, the SEC’s Office of the Secretary issued a notice stating that the Commission would review the delegated action. Under Rule 431 of the Commission’s Rules of Practice, such a review results in an automatic stay. This means the approval is suspended until the full Commission decides whether to uphold, modify, or overturn it. What is the Bitwise 10 Crypto Index ETF? The Bitwise 10 Crypto Index Fund, launched in 2017 and trading under the ticker BITW, is designed to track the performance of the ten largest crypto assets, excluding stablecoins and wrapped tokens. The fund rebalances monthly and, as of June 2025, held nearly 90% of its portfolio in Bitcoin and Ethereum. Other holdings included XRP, Solana, Cardano, Chainlink, Avalanche, Litecoin, and Polkadot. Bitwise’s goal was to convert BITW from an over-the-counter product into a regulated ETF, allowing broader investor access and potential fee…
