The U.S. Securities and Exchange Commission (SEC) has decided to pause the approval of the Bitwise 10 Crypto Index Fund, raising concerns among investors and market participants.
What is 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, along with XRP, Solana, Cardano, Chainlink, Avalanche, Litecoin, and Polkadot.
Reasons for SEC's Stay Order
The SEC enacted the stay of approval for Bitwise just hours after the initial sanction on July 22, based on Rule 431, which allows the Commission to review actions delegated by its staff, leading to an automatic suspension of the decision until a final review.
Future of Crypto ETFs and Expert Opinions
Analysts like James Seyffart from Bloomberg Intelligence speculate that the SEC may have delayed the decision to establish a unified framework for digital assets ETFs. The insight that the SEC might be developing standard criteria for digital assets in ETFs raises potential delays for approval timelines. Although there is hope for a resolution soon, complex proposals involving mechanisms like staking cause special caution among regulators.
The pause in the approval of Bitwise 10 Crypto Index Fund adds further uncertainties to the crypto ETF market. Experts have differing views, but many raise questions about the SEC's future strategy regarding the regulation of digital assets and the prospects for their integration into ETFs.
