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In a surprising turn of events, the U.S. Securities and Exchange Commission (SEC) has postponed the approval of Bitwise’s multi-asset crypto ETF just hours after staff had initially cleared it. The Bitwise 10 Crypto Index Fund, which manages approximately $1.68 billion in assets, holds a basket of major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), and others. While the approval initially signaled a breakthrough for diversified crypto investment vehicles, the sudden delay has once again clouded the regulatory outlook for crypto ETFs in the United States.
The ETF had received preliminary approval from the Division of Trading and Markets on Tuesday morning. However, shortly afterward, the SEC’s Office of the Secretary triggered an automatic stay under Rule 431, a regulation that allows the full Commission to review and potentially overturn decisions made by its staff. This mechanism has effectively halted the ETF’s progress pending further internal deliberations.
Industry voices were quick to weigh in. Nate Geraci, co-founder of The ETF Institute, expressed frustration over the delay, stating that both the Bitwise and other multi-asset ETFs “should be allowed to convert or uplist as soon as possible.” His comments reflect growing industry impatience as regulatory inconsistencies continue to hinder ETF issuers.
This isn’t the first instance of such a reversal in 2025. Earlier this month, Grayscale’s Digital Large Cap Fund experienced a nearly identical delay after receiving approval. That ETF, which also includes assets like BTC, ETH, XRP, ADA, and SOL, was similarly halted under Rule 431. The repetition of this pattern has raised questions about the SEC’s internal decision-making processes and their implications for crypto-based financial products.
The Bitwise 10 Crypto Index Fund is unique in its structure. About 90% of the fund’s assets are allocated to Bitcoin and Ethereum, while the remaining 10% covers eight other cryptocurrencies: Solana, XRP, Cardano, Avalanche, Chainlink, Bitcoin Cash, Uniswap, and Polkadot. The fund is rebalanced monthly and carries a 2.5% expense ratio. Since starting in 2017, it has aimed to offer investors broad exposure to the digital asset ecosystem in a single product—something still rare in traditional U.S. markets.
Had the SEC not paused its progress, this ETF would have become the first officially sanctioned multi-asset crypto ETF in the country. Such a product could provide retail and institutional investors alike with a simplified way to gain diversified exposure to top-performing digital currencies. But despite the potential benefits, the SEC appears to be moving cautiously, especially when the proposed fund includes tokens that do not yet have individual ETF approvals, such as XRP and ADA.
This hesitation is likely tied to the SEC’s ongoing struggle to define clear regulatory standards for digital assets. The inclusion of assets like XRP and Cardano—cryptocurrencies that have previously drawn regulatory scrutiny—adds complexity to the approval process. The Commission appears to be prioritizing a uniform framework before opening the floodgates to multi-token ETFs.
Further complicating the landscape, the SEC is simultaneously reviewing other filings from major firms such as Franklin Templeton, Fidelity, and Invesco Galaxy. These firms have also submitted applications for various crypto-related ETFs, indicating that the Commission is currently managing a high volume of digital asset fund proposals. As a result, delays and reversals like the one faced by Bitwise may become more common in the near term.
The uncertainty surrounding the SEC’s stance has not gone unnoticed. After Grayscale’s fund was paused, the company publicly stated that continued delays were harming investors and even hinted at potential legal action. A similar response could follow from Bitwise, especially if the delay becomes prolonged. Notably, Rule 431 does not impose any specific timeline for resolution, meaning the fund could remain in limbo indefinitely.
At the moment, the SEC has not provided any timeline or further explanation for the delay. The crypto industry is now watching closely, as this latest reversal underscores the broader regulatory hurdles that still remain. Investors, ETF issuers, and legal analysts alike are waiting for clarity on how and when the Commission plans to resolve internal reviews and whether this signals a more cautious or inconsistent regulatory approach moving forward.
Until then, the approval of multi-asset crypto ETFs—despite strong demand and institutional interest—remains uncertain, with regulatory unpredictability continuing to shape the landscape for crypto-based investment products in the U.S.
