SEC Pauses Bitwise Crypto Index Fund Conversion, Raising Questions About XRP ETF Approval Timeline

Key Points

1. The SEC’s decision reverses initial approval from its Division of Trading and Markets, highlighting a cautious approach to crypto ETFs.

2. XRP and other altcoins face prolonged regulatory limbo, with spot-based ETF approvals unlikely until late 2025.

3. Investors currently have access to leveraged and futures-based ETFs for XRP and Solana, which carry higher risks compared to spot ETFs.

4. The SEC’s handling of Bitwise’s ETF mirrors past experiences with Grayscale’s Digital Large Cap ETF, suggesting a pattern of regulatory inconsistency.

5. The pause underscores ongoing challenges in the U.S. crypto ETF market, impacting investor confidence and market growth.