SEC Greenlights—Then Hits Pause—on Bitwise ETF Conversion

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In a rare move, the SEC approved Bitwise’s request to convert its crypto index fund into an ETF, only to suspend the decision shortly after, signaling internal debate.

The agency’s Trading and Markets division initially gave “accelerated approval” for the Bitwise 10 Crypto Index Fund to transition to an ETF. But within hours, SEC assistant secretary Sherry Haywood issued a stay, freezing the process until the full Commission reviews the decision.

The BITW fund, which holds Bitcoin, Ether, and other major cryptocurrencies, has been awaiting ETF status since Bitwise’s November application.

Bloomberg’s James Seyffart suggested on X that the abrupt pause indicates pushback from at least one SEC commissioner.