SEC postpones Bitwise ETFs using XRP, BTC, SOL etc. and after approval

The SEC has postponed approval for the Bitwise ETF hours after staff first gave it green light on Tuesday. The Bitise 10 Crypto Index Fund, which actually manages $1.68 billion in assets and owns major cryptocurrencies such as Bitcoin, Ethereum, XRP and Solana, has been approved by staff and staff will suspend it immediately, and this Crypto ETF Delay 2025 is such an inverse second inverse.

Why Bitwise’s Multi-Asset Crypto ETFs Facing SEC Scrutiny in 2025

SEC postpones bitwise ETF under internal review rules

The SEC will defer approval of Bitwise ETFs using what is called Rule 431. This actually allows the full fee to confirm the decisions made by staff. The trade markets division approved a conversion to the Bitise 10 Crypto Index Fund on Tuesday morning, but the SEC secretary’s office caused an automatic stay several hours later.

Nate Geraci, co-founder of the ETF Institute, said this:

“Both these should be converted/uplisted as soon as possible.”

This Crypto ETF delay in 2025 follows the exact same pattern as Grayscale’s Digital Large Cap Fund. Industry experts have described the situation as very strange, putting other ETF publishers in an uncertain position at the moment.

Multi-asset Crypto ETF structure and content

The Bitise 10 Crypto Index Fund holds about 90% of the weight of Bitcoin and Ethereum, with the remaining 10% spreading to eight other cryptocurrencies. The fund rebalances each month and has an expense ratio of 2.5%, launched in 2017.

This multi-asset Crypto ETF is actually the first in the US, with investors diversifying their exposure to the broader digital asset market through a single product. This may have been a milestone, but the SEC will postpone approval for Bitwise ETF despite potential benefits.

Regulatory standards create uncertainty of ongoing approval

SEC’s hesitation may be attributed to the need to establish consistent standards for cryptocurrencies such as XRP and ADA, which do not yet have standalone ETFs. This crypto ETF delay in 2025 reflects the broader regulatory challenges the Commission faces with multi-asset products.

The SEC was also busy reviewing filings from Franklin Templeton, Fidelity and Invesco Galaxy on the same Tuesday. As the committee works to develop comprehensive standards, the multi-asset Crypto ETF sector faces surveillance.

Approximately a week after Grayscale faced a similar suspension, the company responded with warnings that delays could cause harm to investors, raising the possibility of legal action. The Bitise 10 Crypto Index Fund is currently facing the same uncertain timeline and does not have the required deadline for the committee’s review process under Rule 431.

At the time of writing, the SEC has indefinitely postponed Bitwise ETF approvals, waiting for investors and the broader crypto community to clarify when these multi-asset products will actually gain the final green light.