SEC approves, then instantly pauses Bitwise’s ETF conversion

2025-07-25 15:48:14 Primitive Reading

The US Securities and Exchange Commission approved and then immediately paused the conversion of Bitwise’s crypto index fund into an exchange-traded fund, leaving it in limbo pending a review.

The SEC's Division of Trading and Markets granted an “accelerated approval” of the Bitwise 10 Crypto Index conversion into an ETF on Tuesday, which means Bitwise could request that the SEC declare the registration effective earlier than the regular timeline.

However, in a letter the same day, SEC assistant secretary Sherry Haywood said the “order is stayed until the Commission orders otherwise,” and the “Commission will review the delegated action.”

Bitwise’s cryptocurrency index fund, the Bitwise 10 Crypto Index Fund, which trades under the ticker BITW, currently consists of exposure to various cryptocurrencies including Bitcoin and Ether. The firmapplied to convert it into an ETFin November.

SEC assistant secretary Sherry Haywood paused the approval of Bitwise’s crypto index fund pending a review. Source: SEC

The SEC and Bitwise did not immediately respond to a request for comment.

Situation mirrors Grayscale ETF delay

Bloomberg ETF analyst James Seyffart said in an X post on Tuesday that the Bitwise ETF has been “stayed by either one or multiple commissioners. Meaning they cannot actually convert it into an ETF...yet.”

“This wasn’t due for a decision until next week. So the SEC went pretty early with this decision.”

NovaDius Wealth Management president Nate Geraci called it a “bizarre situation,” and said it’s similar to the Grayscale Digital Large Cap ETF conversion delay, which was approved on July 1 and then paused soon after.

“IMO [in my opinion], both of these should be allowed to convert/uplist asap,” Balchunas said.

“Funny business” going on at SEC, says exec

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