Bitwise is reassessing the status of its proposed cryptocurrency ETF after the U.S. Securities and Exchange Commission unexpectedly hit pause just one day after granting approval.
On Tuesday, the SEC’s Division of Trading and Markets gave the green light for the Bitwise 10 Crypto Index Fund to convert into an exchange-traded fund. But the decision was quickly stayed by SEC Assistant Secretary Sherry R. Haywood, pending a full commission review.
Bitwise said it was “thrilled by the SEC’s accelerated approval” and is now evaluating the implications of the sudden reversal. “The subsequent stay is a new development that we’re actively evaluating,” a company spokesperson said in a statement. “We’ve been encouraged by the constructive engagement with the SEC under the new administration.”
The abrupt about-face marks the second time in recent months that the SEC has halted a crypto ETF after initially signing off. Grayscale’s Digital Large Cap Fund faced a similar fate earlier this year. That proposal, which sought to convert a legacy trust product into an ETF, was initially approved before being pulled back for further review. Grayscale has continued to push for a resolution, insisting the product meets all regulatory criteria.
The Bitwise 10 fund — trading under the ticker “BITW” — tracks a weighted basket of major digital assets, including bitcoin, ether, XRP, solana, and polkadot. The firm has pitched it as a diversified on-ramp for investors seeking broader exposure to the crypto market beyond bitcoin alone.
The move comes as the SEC weighs a growing number of crypto ETF applications, from funds tracking Bitcoin and Ethereum to those tied to smaller tokens like Solana and Dogecoin. Market watchers say the regulatory tone changed since President Donald Trump returned to office in January, leading to a more open posture toward crypto-linked financial products.
Still, this latest development suggests the path from approval to launch remains far from straightforward, even in a post-Gensler era. The SEC’s internal politics and its cautious handling of precedent-setting decisions continue to inject uncertainty into what many see as a maturing market.
