On July 22, the US Securities and Exchange Commission (SEC) swiftly approved NYSE Arca’s proposal to list the Bitwise 10 Crypto Index ETF. This diverse asset fund includes XRP, Solana, Cardano, along with seven other digital currencies, Bitcoin, and Ether. According to Release No. 34-103531, the SEC found the proposal aligned with Section 6(b)(5) of the Exchange Act, designed to prevent fraud, promote equitable trade principles, and safeguard investors and the public interest.
Spot XRP ETF Faces Delay
Bitwise’s trust, trading under the symbol BITW over the counter, was poised to transition to a national exchange as an ETF. According to the SEC’s order, the latest asset allocation includes 78.72% Bitcoin, 11.10% Ether, and 4.97% XRP, with the rest distributed across Solana, Cardano, Sui, Chainlink, Avalanche, Litecoin, and Polkadot. The fund’s asset mix, subject to monthly adjustments, must have at least 85% in assets already supporting other SEC-approved exchange-traded products, thus limiting smaller altcoins to a 15% share.
Following the delegated approval by the Division of Trading & Markets, the Commission’s Office of the Secretary stepped in. Assistant Secretary Sherry R. Haywood informed NYSE Arca in a short letter that “the Commission will review the delegated action” under Rule 431 of the SEC’s Rules of Practice, and that “the July 22 order is stayed until the Commission orders otherwise.” This action halts the conversion process, keeping BITW as an OTC-traded entity.
ETF experts on X promptly reacted to the procedural reversal. Bloomberg analyst James Seyffart noted, “We have approval of the Bitwise 10 Index fund — BITW — but just like Grayscale’s GDLC earlier this month, Bitwise has been stayed by either one or multiple commissioners. Meaning they cannot actually convert it into an ETF … yet.” Analyst Nate Geraci described the situation as “bizarre,” asserting that Bitwise and Grayscale “should be allowed to convert/uplist asap.”
The stay echoes the Commission’s handling of Grayscale’s Digital Large Cap ETF earlier in July, highlighting internal disagreements on expanding US crypto-ETF offerings beyond single-asset products. Rule 431 reviews are discretionary and without a statutory deadline, so the Commission may take weeks or months before lifting the pause or issuing a final decision, during which the approval order holds no legal weight.
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Market observers are focused on two main questions: whether XRP’s inclusion, a contentious point in the SEC’s crypto enforcement, prompted additional scrutiny, and whether the review might impose stricter conditions on multi-asset crypto ETFs, such as more rigorous custody, pricing, or surveillance standards.
While the stay does not immediately impact BITW shareholders, Bitwise claims that an NYSE-listed ETF would reduce spreads, eliminate premium-discount discrepancies, and expand distribution through brokerage platforms not handling OTC products. The company argued in its submission that regulated exchange trading will improve transparency and investor protection by adhering to the Exchange Act’s reporting framework and the consolidated tape.
For now, the decision rests with a Commission grappling with the pace of opening the US market to diversified crypto investments. Until the review is complete, investors seeking a regulated vehicle bundling Bitcoin, Ether, XRP, and other major altcoins must wait or continue with OTC trusts lacking ETF structural safeguards.
At press time, XRP was trading at $3.349.
