SEC Approves Bitwise ETF, Then Immediately Reverses Decision Hours Later

Key Points

1. The SEC granted accelerated approval for Bitwise’s 10 Crypto Index ETF on July 22, 2025, but reversed the decision later the same day via a stay order.

2. The ETF would have tracked ten digital assets, including Bitcoin, Ethereum, XRP, Solana, and others, with at least 85% allocation to these assets.

3. The reversal occurred despite the SEC initially finding the proposal compliant with Exchange Act requirements for fraud prevention and investor protection.

4. Ethereum ETFs saw significant inflows ($533.87 million on July 22), while Bitcoin ETFs experienced outflows ($67.93 million the same day).

5. Grayscale’s Digital Large Cap Fund conversion to an ETF, which includes Bitcoin, Ethereum, Solana, and XRP, is also pending SEC review.

6. SEC Chairman Paul Atkins has formed a crypto task force to clarify regulations, following delays in decisions on multiple altcoin ETFs.