#SEC

SEC Hits Pause on Bitwise Crypto ETF Conversion

Just hours after approving Bitwise’s bid to convert its $1.68B OTC Crypto Index Fund (BITW) into a spot ETF on July 22, the SEC issued a stay order, halting the transition pending further review. The fund, which holds 73.8% $BTC , 13.8% $ETH , and 6.5% $XRP among others, was set to trade on NYSE Arca.

This move mirrors the SEC’s recent stay on Grayscale’s ETF conversion, raising speculation about deliberate delays. Bloomberg’s James Seyffart suggests the SEC may be crafting a broader digital assets ETF framework, streamlining future approvals. Meanwhile, attorney Scott Johnsson hints the delays could be a tactic to manage statutory review periods, though he expects clarity by October under a pro-crypto SEC regime.