The SEC has approved the conversion of the Bitwise 10 Crypto Index Fund (BITW) into a spot ETF, a first for a multi-asset crypto fund in the United States, before immediately suspending its own decision.
The BITW fund manages $1.68 billion and is primarily composed of Bitcoin and Ethereum, but also includes altcoins like Solana, XRP, ADA, UNI, or DOT, which are still legally ambiguous.
This suspension comes amidst increasing pressure: major financial firms are ramping up requests for ETFs, forcing the SEC to rethink its approach to crypto products.
A Historic First… Abruptly Halted
It’s a green light that feels like pulling the handbrake. On Tuesday, the SEC officially approved the transformation of the Bitwise 10 Crypto Index Fund (BITW) into a spot ETF. A first for a multi-asset crypto basket in the U.S. But barely had the stamp been stamped, the agency suspended its own decision. Result: Bitwise must continue to wait. And so does the entire market.
Why this contradictory move? Officially, the SEC states that it wants to ‘reconsider’ the approval, in the same terms as it used to block Grayscale’s multi-asset ETF a few days earlier.
A Massive Fund, a Bet on Diversity
BITW manages $1.68 billion in assets. The fund is mostly exposed to Bitcoin and Ethereum (over 90%), but also includes a selection of the top altcoins in the market: Solana, XRP, Cardano, Avalanche, Chainlink, Bitcoin Cash, Uniswap, and Polkadot.
An ETF based on this composition would be a game-changer. So far, all ETFs approved by the SEC targeted a single asset. BITW would thus become the first broadly diversified crypto product listed on U.S. markets.
A Troubling Strategy for the SEC?
The issue is clear: these multi-asset ETFs expose regulators to assets that are still legally unclear. XRP, ADA, or UNI still do not have a clear regulatory status or a dedicated spot ETF. For the SEC, accepting an ETF that includes them could potentially open a Pandora’s box… that it is not yet ready to handle.
According to several sources close to the matter, the authority is seeking to establish a coherent approach. Even if it means pausing or contradicting itself to avoid setting a precedent.
An Intriguing Timing
The suspension of BITW is not an isolated case. It comes the same week as several other announcements: the review of the Canary Capital SUI ETF, a new application for the ONDO ETF by 21Shares, and amendments filed by Fidelity, Franklin Templeton, and Invesco Galaxy on the mechanics of redeeming their Bitcoin and Ethereum ETFs.
In short: the SEC is under pressure. The timeline is accelerating. Financial giants want their slice of the crypto pie. And the agency, despite its hesitations, seems aware that it cannot maintain the status quo indefinitely.
A Future Still Locked, But Not for Long
The BITW remains suspended… for now. But behind this freeze lies a very real dynamic: that of an institutional market pushing forward, a wavering regulator, and a product, the multi-asset crypto ETF, that could soon become the new standard.
If the green light stays on for good, it will no longer be just Bitcoin and Ethereum at the forefront. It will be the entire crypto ecosystem accessing Wall Street.
