SEC Greenlights Bitwise Crypto ETF, Then Halts It for Further Review

In a dramatic reversal, the U.S. Securities and Exchange Commission (SEC) has temporarily blocked the approval of Bitwise’s proposed crypto index ETF just hours after fast-tracking its greenlight.

The SEC’s Division of Trading and Markets initially granted “accelerated approval” for Bitwise’s flagship product, the Bitwise 10 Crypto Index ETF, on Tuesday, July 22, 2025. The fund, trading under the ticker BITW, offers diversified exposure to top digital assets including Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Polkadot, weighted by market capitalization.

However, that momentum stalled when Assistant Secretary Sherry R. Haywood issued a formal stay of the approval later the same day. Citing Rule 431 of the SEC’s Rules of Practice, Haywood stated that the Commission itself would now conduct a full review of the decision. “The July 22, 2025 order is stayed until the Commission orders otherwise,” she wrote.

Bitwise has yet to publicly respond to the reversal, while the SEC declined to comment further on individual filings.

The regulatory whiplash mirrors a similar episode involving Grayscale, whose own attempt to convert its Digital Large Cap Fund into an ETF was similarly paused by the SEC despite initial approval. That fund is heavily weighted toward Bitcoin and Ethereum, with smaller allocations to Cardano, Solana, and XRP.

Both incidents underscore the agency’s uncertain posture toward crypto-based ETFs—even amid a broader shift in tone under the Trump administration, which has signaled a more permissive stance on digital assets.

As the SEC continues to weigh proposals for products tied to coins like Solana and Dogecoin, the sudden freeze on Bitwise’s approval suggests that the path to a full-fledged crypto ETF market remains complex and politically charged.