The SEC postpones Bitwise ETF approval just hours after staff initially gave it the green light on Tuesday. The Bitwise 10 Crypto Index Fund, which actually manages $1.68 billion in assets and holds major cryptocurrencies like Bitcoin, Ethereum, XRP, and Solana, received staff approval and then staff immediately paused it under Rule 431. This crypto ETF delay 2025 marks the second such reversal this month, and it’s creating fresh uncertainty around multi-asset crypto ETF products right now.
Why Bitwise’s Multi-Asset Crypto ETF Faces SEC Scrutiny in 2025
The SEC Postpones Bitwise ETF Under Internal Review Rule
The SEC postpones Bitwise ETF approval using something called Rule 431, which actually allows the full Commission to review decisions made by staff. The Division of Trading and Markets had approved the Bitwise 10 Crypto Index Fund conversion on Tuesday morning, but then the SEC’s Office of the Secretary triggered an automatic stay just hours later.
Nate Geraci, who is co-founder of The ETF Institute, had this to say:
“Both of these should be allowed to convert/uplist ASAP.”
This crypto ETF delay in 2025 follows the exact same pattern as Grayscale’s Digital Large Cap Fund, which also got approval before being paused under identical circumstances. Industry experts have described the situation as quite bizarre, and it’s leaving other ETF issuers in an uncertain position right now.
Also Read: SEC Pauses Grayscale ETF With BTC, ETH, XRP, SOL & ADA For Review
Multi-Asset Crypto ETF Structure and What’s Inside
The Bitwise 10 Crypto Index Fund holds about 90% of its weight in Bitcoin and Ethereum, with the remaining 10% spread across eight other cryptocurrencies: Solana, XRP, Cardano, Avalanche, Chainlink, Bitcoin Cash, Uniswap, and also Polkadot. The fund rebalances monthly and carries a 2.5% expense ratio, having launched back in 2017.
This multi-asset crypto ETF would have actually been the first of its kind in the United States, offering investors diversified exposure to the broader digital asset market through a single product. Even though this could have been a milestone, the SEC postpones Bitwise ETF approval despite the potential benefits.
Regulatory Standards Create Ongoing Approval Uncertainty
The SEC’s hesitation likely stems from the need to establish consistent standards for cryptocurrencies like XRP and ADA that don’t yet have standalone ETFs. This crypto ETF delay in 2025 reflects broader regulatory challenges that the Commission faces with multi-asset products.
The SEC was also busy reviewing filings from Franklin Templeton, Fidelity, and Invesco Galaxy on the same Tuesday, which shows there’s active oversight of crypto ETF applications happening right now. The multi-asset crypto ETF sector faces heightened scrutiny as the Commission works to develop comprehensive standards.
Also Read: XRP Price Alert: $3.47 Holds Key as 11 ETF Giants Drive $5 Rally
About a week after Grayscale faced a similar pause, the company responded by warning that delays were causing investors to suffer harm and even raised the possibility of legal action. The Bitwise 10 Crypto Index Fund now faces the same uncertain timeline, and there’s no required deadline for the Commission’s review process under Rule 431.
At the time of writing, the SEC postpones Bitwise ETF approval indefinitely, leaving investors and the broader crypto community waiting for clarity on when these multi-asset products might actually get the final green light.
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