The U.S. Securities and Exchange Commission (SEC) has halted the approval process for Bitwise’s 10 Crypto Index Fund ETF shortly after initially granting it, invoking Rule 431 to trigger a full Commission review.
The suspended ETF aimed for diversified crypto sector exposure with heavy weighting towards Bitcoin and Ethereum, alongside additional holdings in Solana, XRP, and Cardano.
This action follows a similar suspension placed on Grayscale’s Digital Large Cap Fund (GDLC) ETF earlier this month, both citing Rule 431 procedures.
The SEC is concurrently reviewing several other complex crypto ETF applications, including a separate Bitwise proposal to incorporate Ethereum staking rewards within an ETF structure.
The SEC’s moves underline a cautious regulatory stance towards digital asset exchange-traded funds, with ongoing reviews and potential future guidance shaping the evolving landscape for these investment vehicles.