SEC Places Bitwise Bitcoin-Heavy Crypto ETF Approval Under Review Amid Regulatory Uncertainty

Key Points

1. The SEC suspended the approval of Bitwise’s 10 Crypto Index Fund ETF shortly after initially granting it, invoking Rule 431 for a full Commission review.

2. The Bitwise ETF is heavily weighted towards Bitcoin and Ethereum, with additional exposure to Solana, XRP, and Cardano, aiming to provide diversified crypto sector exposure.

3. A similar hold was placed on Grayscale’s Digital Large Cap Fund (GDLC) ETF earlier in July 2025, also citing Rule 431.

4. The SEC is reviewing other complex crypto ETF proposals, including Bitwise’s application to incorporate Ethereum staking within an ETF structure.

5. The SEC’s actions indicate a cautious approach to crypto ETFs, with ongoing reviews and potential future guidance shaping the regulatory landscape for these investment vehicles.