A Green Light, Then a Red Light: Why the SEC Is Pausing New Altcoin ETFs
Main Idea
The U.S. SEC initially approved the Bitwise 10 Crypto Index Fund (BITW) for conversion into a spot ETF but later issued a stay order, pausing the approval for further review, mirroring a similar action on Grayscale’s Digital Large Cap Fund.
Key Points
1. The SEC approved the Bitwise 10 Crypto Index Fund (BITW) for conversion into a spot ETF but quickly issued a stay order, suspending the launch pending further review.
2. A similar stay order was placed on Grayscale’s Digital Large Cap Fund ETF conversion earlier in July 2025.
3. The BITW fund includes cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and others.
4. The SEC may be delaying approvals to await legislative clarity, such as the potential passage of the Clarity Act by the U.S. Senate.
5. XRP, included in both funds, remains under legal pressure from the SEC vs Ripple case, adding complexity to the approval process.
Description
The U.S. SEC approved the Bitwise 10 Crypto Index Fund (BITW) but issued a stay order. A similar move happened with Grayscale’s Digital Large Cap Fund. The U.S. SEC has been prioritizing the development of comprehensive guidelines for crypto ETFs. The SEC’s Division of Trading and Markets approved the Bitwise 10 Crypto Index Fund (BITW) for conversion into a spot ETF on July 22. But in a confusing twist, the agency’s leadership quickly issued a “stay order,” pausing that same approval for a full...
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