SEC May Further Review Bitwise’s 10 Crypto Index ETF After Initial Staff Approval Pause

Key Points

1. The SEC halted Bitwise’s 10 Crypto Index ETF approval using Rule 431, which allows the full Commission to review and stay staff decisions without a mandated timeline.

2. This action follows a similar pause on the Grayscale Digital Large Cap Fund (GDLC), indicating internal resistance within the SEC towards multi-asset crypto ETFs.

3. Rule 431’s use creates uncertainty for crypto ETF issuers, potentially deterring new entrants and complicating strategic planning.

4. Market participants and analysts have criticized the delays, calling for clearer regulatory guidelines to address the unique challenges of crypto ETFs.

5. The SEC’s cautious stance reflects ongoing regulatory ambiguity, which may slow the approval of similar crypto ETFs in the near term.