‘Bizarre’: SEC Approves Then Pauses Bitwise’s Bid To Convert ETF Holding Bitcoin, Ether, And XRP

Key Points

1. The SEC's Division of Trading and Markets granted 'accelerated approval' for Bitwise's conversion of its Crypto Index Fund (BITW) into a spot ETF, tracking assets like Bitcoin, Ethereum, XRP, and Solana.

2. The approval was later paused without public explanation, similar to the initial approval and subsequent delay seen with Grayscale's Digital Large Cap Fund (GDLC).

3. Industry figures, including Nate Geraci of The ETF Institute, criticized the SEC's inconsistent actions, calling for immediate approval of such conversions.

4. Scott Johnsson of Van Buren Capital speculated that the SEC's pause might be a tactic to bypass the 240-day statutory approval period under new leadership.

5. The situation has raised concerns about regulatory transparency and consistency in the SEC's handling of crypto-related financial products.