SEC Approves, Then Pauses Bitwise’s Multi-Crypto ETF Conversion

In Brief:

Bitwise’s bid to convert BITW into a multi-asset crypto ETF was approved—then suddenly paused.

SEC's move adds uncertainty around broader ETF standards for altcoins like XRP and ADA.

‍

The U.S. Securities and Exchange Commission (SEC) briefly approved Bitwise’s proposal to convert its Bitwise 10 Crypto Index Fund (BITW) into a spot ETF—only to pause the process hours later. The fund, which holds 90% Bitcoin and Ethereum with exposure to tokens like Solana, XRP, and Cardano, would’ve become the first multi-asset spot crypto ETF in the U.S.

The abrupt reversal mirrors the SEC's handling of Grayscale’s similar ETF attempt earlier this year. Both actions raise fresh doubts about the agency’s evolving standards for crypto index products, especially those including assets that don’t yet have individual ETFs.

The pause appears to stem from regulatory inconsistencies around altcoin classifications. The SEC’s official statement noted the need to “review the delegated action,” a phrase identical to language used in the Grayscale pause.

The move comes amid an active ETF docket, with other major issuers like Fidelity, Invesco Galaxy, and 21Shares also filing amendments or launching new proposals tied to assets like Ethereum, SUI, and ONDO.

‍