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The U.S. Securities and Exchange Commission (SEC) made headlines on July 22 by granting accelerated approval to NYSE Arca to list the Bitwise 10 Crypto Index ETF, a new exchange-traded fund that includes Bitcoin, Ethereum, XRP, and several other cryptocurrencies. However, just hours after the approval, the SEC unexpectedly put the decision on hold, leaving the ETF in limbo.
What Was Approved?
The Bitwise 10 Crypto Index ETF is designed to track the performance of ten major digital assets, including:
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Bitcoin (78.72%)
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Ethereum (11.10%)
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XRP (4.97%)
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Plus smaller portions in Solana, Cardano, Sui, Chainlink, Avalanche, Litecoin, and Polkadot
This ETF would have been the first time Bitwise’s crypto trust — which already trades over-the-counter (OTC) under the symbol BITW — appeared on a major U.S. exchange.
The SEC’s initial approval cited that the ETF complied with Section 6(b)(5) of the Exchange Act, saying it was designed to protect investors, prevent fraud, and promote fair trading practices. The approval also required that at least 85% of the fund’s assets remain in cryptocurrencies already included in other SEC-approved ETFs — effectively limiting the exposure to smaller altcoins.
Sudden Pause by SEC Commissioners
Despite the approval, the SEC’s Office of the Secretary quickly stepped in. Assistant Secretary Sherry R. Haywood issued a formal notice stating the Commission would review the delegated approval. As a result, the July 22 decision is now officially stayed, meaning it has no effect until the full Commission completes its review.
This surprise move caught many in the crypto and ETF industries off guard. Analysts quickly weighed in on the situation on social media.
Bloomberg’s James Seyffart commented that, like the Grayscale Digital Large Cap ETF earlier this month, Bitwise’s approval was immediately stayed, stopping the ETF from staring. Analyst Nate Geraci called it a “bizarre situation” and said both Bitwise and Grayscale should be allowed to convert their crypto products to ETFs without delay.
Why the Pause? XRP Might Be the Reason
The sudden reversal raised two big questions for investors:
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Was XRP the reason for the delay? XRP has been a controversial asset in the eyes of the SEC for years due to the agency’s lawsuit against Ripple. Its inclusion in the ETF might have triggered a closer review by some commissioners.
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Will the SEC set new rules for multi-asset crypto ETFs? There is speculation that the Commission could use this review to impose stricter requirements — such as enhanced custody rules, pricing standards, or market surveillance — on crypto ETFs that hold multiple assets.
No Timeline for Resolution
Because this pause falls under Rule 431 of the SEC’s Rules of Practice, there’s no deadline for when the Commission must finish its review. It could take weeks or even months. In the meantime, BITW will continue to trade OTC, where it is often subject to wide price spreads and limited investor access.
Bitwise has argued that listing the fund on the NYSE would offer major benefits, such as:
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Narrower trading spreads
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Increased investor access
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Better transparency
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Stronger regulatory protections
The firm said in its application that moving to a national exchange would also allow shares to be covered under the Exchange Act’s reporting requirements, boosting investor confidence and improving price accuracy.
What’s Next for Crypto ETFs?
The SEC’s decision to pause the Bitwise ETF — especially after approving it — highlights the internal debate within the agency about how fast the U.S. should expand crypto ETF options beyond single-asset products like Bitcoin and Ethereum.
Until the review ends, investors looking for an easy and regulated way to gain exposure to multiple top cryptocurrencies — including XRP — will have to wait or continue using less regulated OTC trusts.
