Bitwise ETF in Limbo After SEC Issues Surprise Freeze
Bitwise ETF – In a dramatic twist, the U.S. Securities and Exchange Commission (SEC) granted accelerated approval for the Bitwise 10 Crypto Index Fund (BITW) to convert into an exchange-traded fund (ETF)—only to pause the decision on the very same day.
The approval came from the SEC’s Division of Trading and Markets, giving Bitwise the right to fast-track its registration. But later that day, SEC Assistant Secretary Sherry Haywood issued a letter stating the order is “stayed until the Commission orders otherwise,” triggering confusion and speculation across the crypto industry.
Industry Reactions: “Bizarre,” “Funny Business,” and Political Games?
Bloomberg ETF analyst James Seyffart noted that one or more SEC commissioners intervened, halting the ETF’s actual launch. Nate Geraci, president of NovaDius Wealth Management, called the situation “bizarre” and compared it to the Grayscale Digital Large Cap ETF pause earlier this month.
Scott Johnsson of Van Buren Capital speculated the decision may be linked to internal political friction, particularly around Democratic commissioner Caroline Crenshaw, or a strategic move by SEC Chair Paul Atkins to bypass regulatory timelines.
What’s Next for Bitwise and Crypto ETFs?
According to Eric Balchunas, another Bloomberg analyst, the SEC may be stalling until it finalizes standardized listing rules for crypto ETFs—possibly targeting October for implementation.
Meanwhile, the SEC also extended its ruling deadline on in-kind redemptions for Bitwise’s Bitcoin and Ether spot ETFs, and is said to be working with exchanges and fund managers to simplify the ETF approval process overall.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
