- The U.S. SEC approved the Bitwise 10 Crypto Index Fund (BITW) but issued a stay order.
- A similar move happened with Grayscale’s Digital Large Cap Fund.
- The U.S. SEC has been prioritizing the development of comprehensive guidelines for crypto ETFs.
The SEC’s Division of Trading and Markets approved the Bitwise 10 Crypto Index Fund (BITW) for conversion into a spot ETF on July 22. But in a confusing twist, the agency’s leadership quickly issued a “stay order,” pausing that same approval for a full review.
The BITW fund invests in Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), Sui (SUI), Litecoin (LTC), Polkadot (DOT), Chainlink (LINK), and Avalanche (AVAX). The stay order on the BITW fund mirrors a similar move on Grayscale’s Digital Large Cap Fund ETF conversion earlier in July 2025.
As a result, the stay order suspends the BITW fund launch until the SEC decides to uphold, modify, or overturn the approval.
Why Is the SEC Staying ETF Approvals
While the new U.S. SEC administration under Chair Paul Atkins has shifted to a more crypto-friendly approach, the agency remains conservative on ETFs that hold multiple altcoins. The Commission appears focused on developing comprehensive guidelines for these more complex products to ensure investor protection.
With the review process now lengthened, the SEC is likely using this time to create consistent and clear rules for the entire sector. Multi-asset altcoin ETFs pose different regulatory challenges than the single-asset ETFs that have already been approved.
Related: ‘Altcoin ETF Summer’ in the Works – A Look at the New SEC Guidance
Both the BITW fund and the Grayscale’s Digital Large Cap Fund ETF includes XRP, which is still under legal pressure from the SEC vs Ripple case. With Ripple having filed a motion to withdraw its cross-appeal case, XRP market has been waiting for the SEC’s similar move to end the long-standing legal battle.
Related: Grayscale ETF Approved, But Altcoins Stall: What’s Holding Them Back?
The U.S. SEC may have issued stay orders on the BITW fund and Grayscale’s Digital Large Cap Fund ETF to wait for legislative clarity. Currently, the U.S. Senate is expected to approve the Clarity Act after the House of Representatives passed it together with the GENIUS Act and the Anti-CBDC Act.
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