The U.S. Securities and Exchange Commission (SEC) has unexpectedly paused Bitwise’s plan to convert its Bitwise 10 Crypto Index Fund (BITW) into a spot crypto ETF, just hours after initially approving it. The abrupt reversal adds to the ongoing regulatory ambiguity surrounding multi-asset crypto ETFs in the U.S.
BITW, which launched in 2017 and manages $1.68 billion in assets, allocates roughly 90% to Bitcoin (BTC) and Ethereum (ETH), with the rest in Solana (SOL), XRP, Cardano (ADA), Avalanche (AVAX), Chainlink (LINK), Bitcoin Cash (BCH), Uniswap (UNI), and Polkadot (DOT). The fund’s 2.5% expense ratio remains high for ETFs, and Bitwise hasn’t yet confirmed whether this would be lowered if the conversion proceeds.
Had the move gone through, BITW would have been the first multi-token spot crypto ETF in the U.S. market. However, the SEC’s decision mirrors a similar pause in Grayscale’s Digital Large Cap Fund (GDLC) conversion attempt, which also includes assets like ADA and XRP — tokens lacking standalone ETF approvals.
In its official letter, the SEC noted it would “review the delegated action,” a phrase identical to previous crypto ETF delays. Industry insiders suggest the holdup stems from the agency’s challenge in applying consistent standards across tokens without clear regulatory classification.
Meanwhile, the SEC remains active on other fronts. It published filings from firms like Fidelity and Invesco Galaxy to revise redemption processes for BTC and ETH ETFs, and opened reviews for ETF applications from Canary Capital and 21Shares — who also submitted a proposal for an ONDO token ETF.
This latest delay underscores ongoing friction between crypto innovation and evolving U.S. regulatory frameworks.
