- Bitwise’s ETF proposal paused post-SEC approval.
- Market reacts with notable price volatility.
- Regulators cautious on multi-asset crypto funds.
The SEC approved and immediately paused Bitwise’s plan to convert its crypto index fund into a multi-asset ETF on July 22, 2025.
The decision highlights ongoing regulatory caution towards crypto investment vehicles, affecting market stability and investor sentiment.
The SEC’s stay order followed Bitwise’s attempt to convert its 10 Crypto Index Fund into an ETF encompassing BTC, ETH, XRP, and others. Sherry R. Haywood, SEC Assistant Secretary, issued the formal halt, pending a full Commission review.
Bitwise Asset Management is spearheaded by CEO Hunter Horsley. The fund aims for diversified crypto exposure. Regulatory scrutiny impacts XRP, leading to a 6% price drop upon approval delay, showing market sensitivity.
Price fluctuations were observed across the involved cryptocurrencies, including XRP. The regulatory decision prompts industry-wide discussions on ETF asset eligibility. Market reactions emphasize the importance of regulatory clarity in the crypto space.
“The Bitwise ETF has been ‘stayed by either one or multiple commissioners. Meaning they cannot actually convert it into an ETF…yet.” – James Seyffart, ETF Analyst, Bloomberg
The paused approval echoes the recent Grayscale ETF situation. Regulatory reluctance persists towards altcoin-heavy ETFs, impacting investor confidence and market dynamics. Unresolved compliance concerns partially drive these regulatory precautions.
Market analysts suggest this cautious regulatory stance may influence future crypto fund deployments. Many altcoins, typically under regulatory scrutiny, reacted with increased volatility, reflecting developing industry trends and potential impacts on crypto investment strategies.
