SEC Delays Bitwise Crypto Index Fund ETF Decision Amid Ongoing Spot ETF Uncertainty

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Bitwise’s proposal to convert its flagship crypto index fund into an exchange-traded fund (ETF). The Bitwise 10 Crypto Index Fund (BITW), which launched in November 2017, tracks the top cryptocurrencies by market capitalization and currently holds $1.44 billion in assets under management (AUM).

Bitcoin (BTC) dominates the fund’s portfolio, representing 77% of its holdings, while Ethereum (ETH) accounts for nearly 12%. Other notable cryptocurrencies in the index include XRP, Solana (SOL), and Cardano (ADA), offering investors broad exposure to the digital asset market.

Despite growing demand for crypto-based ETFs, the SEC has yet to approve any spot ETFs tied to individual altcoins. Several firms—including Bitwise, Franklin Templeton, Canary Capital, and 21Shares—have submitted applications for XRP-related ETFs, but the regulator has hit pause on these proposals as well.

Although the current SEC administration is seen as more crypto-friendly, it has shown little urgency in advancing the approval process for spot altcoin ETFs. Analysts expect a potential wave of approvals in late 2025, aligning with rising optimism in the market. On-chain prediction platform Polymarket shows strong bullish sentiment, with bettors anticipating regulatory greenlights for these products later this year.

As institutional interest in digital assets grows, the delay underscores continued regulatory caution around broader crypto ETF adoption. Market participants are closely watching the SEC’s next move, which could significantly impact investor access to diversified crypto exposure via ETFs.

The delay in Bitwise’s ETF conversion highlights the ongoing tension between innovation and regulation in the evolving cryptocurrency landscape.