The U.S. Securities and Exchange Commission (SEC) initiated the process to convert the Bitwise 10 Crypto Index Fund into an exchange-traded fund (ETF), but soon withdrew its approval. This situation raises interest in the future of crypto indexes in financial markets.
Initial SEC Approval
SEC initially approved the conversion of the Bitwise 10 Crypto Index Fund into an ETF, but the accelerated approval was later withdrawn. A document dated July 22, 2025, issued by the SEC's Division of Trading and Markets stated that the matter would be reviewed by the full Commission.
Issues with ETF Conversion
In its official notice, the SEC cited Rule 431, which allows the agency to suspend a decision until further notice pending a full review. The SEC declined to comment on the ongoing review, citing agency policy.
Analysis of Delay Reasons
Analysts have proposed various theories regarding the delay reasons. Scott Johnson of Van Buren Capital suggested that the initial approval may have been issued to facilitate further review or intervention by Commissioner Caroline Crenshaw, known for her skepticism toward cryptocurrencies. Bloomberg Intelligence analyst Eric Balchunas added that the SEC is likely delaying decisions while it works on developing a unified framework for crypto ETF listings.
Faced with unexpected delays in the ETF approval process, the industry awaits further guidance from the SEC. The future of crypto ETFs and their role in financial markets remain uncertain.