- The U.S. Securities and Exchange Commission (SEC) delayed approval of the Bitwise 10 Crypto Index Fund shortly after staff had initially cleared it.
- The ETF manages $1.68 billion in assets and is composed mainly of Bitcoin and Ethereum, with a smaller portion in other cryptocurrencies.
- The SEC’s decision used Rule 431, which lets the full Commission review staff approvals and led to an automatic pause.
- This marks the second ETF delay of its type in a month and mirrors a recent pause for Grayscale’s Digital Large Cap Fund.
- No deadline is set for the Commission to finish its review, creating uncertainty for similar multi-asset crypto ETFs.
The U.S. Securities and Exchange Commission (SEC) postponed approval of the Bitwise 10 Crypto Index Fund on Tuesday, just hours after staff gave their initial go-ahead. The fund, which seeks to convert into a multi-asset crypto exchange-traded fund (ETF), awaits a full review as the process moves forward under an internal rule.
The Bitwise 10 Crypto Index Fund holds $1.68 billion in assets, with about 90% concentrated in Bitcoin and Ethereum. The remaining 10% is split across cryptocurrencies such as Solana, XRP, Cardano, Avalanche, ChainLink, Bitcoin Cash, Uniswap, and Polkadot. The fund rebalances monthly and charges a 2.5% annual fee. If approved, this would be the first multi-asset crypto ETF in the United States.
The SEC used Rule 431 to halt progress on the Bitwise ETF. This regulation allows the entire Commission to review and potentially overturn decisions made by SEC staff. According to Nate Geraci, co-founder of The ETF Institute, “Both of these should be allowed to convert/uplist ASAP.” The delay follows a similar pattern seen earlier this month when Grayscale’s Digital Large Cap Fund was paused using the same rule.
Industry experts note the process has introduced new uncertainty for ETF applicants. The SEC continues to review other crypto ETF filings, including those from Franklin Templeton, Fidelity, and Invesco Galaxy. Regulatory caution appears focused on digital assets like XRP and Cardano, which do not yet have individual ETFs approved in the U.S.
Grayscale recently warned that these delays may harm investors and hinted at possible legal action. There is no required timeline for the SEC’s review under Rule 431, which means the Bitwise ETF approval remains open-ended. The crypto sector and investors continue to wait as the Commission reviews multi-asset ETF products.
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