Bitwise Crypto ETF Application Faces SEC Stay Order

Bitwise Asset Management’s ETF application for its crypto index fund, comprising Bitcoin and Ethereum, has been temporarily halted following a stay order from the U.S. Securities and Exchange Commission effective July 22, 2025.

The SEC’s decision to pause Bitwise’s ETF bid underscores regulatory challenges facing multi-asset crypto ETFs, impacting market sentiments and crypto asset inclusion strategies.

Bitwise Asset Management, led by CEO Hunter Horsley and CIO Matt Hougan, aimed to convert its crypto index fund into an ETF. The fund, focusing heavily on Bitcoin and Ethereum, awaits regulatory approval. SEC’s involvement places this conversion on hold. The stay order, authored by SEC’s Assistant Secretary, reflects ongoing scrutiny.

“This letter is to notify you that, pursuant to Rule 431…the July 22, 2025 order is stayed until the Commission orders otherwise.” – Sherry R. Haywood, Assistant Secretary, SEC

Bitwise’s exploration of multi-asset ETFs continues amid this regulatory landscape.

The immediate effects show impacted investment sentiment, particularly for crypto assets like XRP, given regulatory scrutiny. Stakeholder reactions reflect concerns about the wider implications for crypto index products. The financial implications include potential shifts in market accessibility for investors seeking diversified crypto exposure. Business adjustments are likely for asset management firms adapting to regulatory landscapes. Historical trends indicate regulatory dominance in multi-asset ETF approval processes. This adds layers of complexity to new proposals involving diversified digital assets. Many analysts expect continued delays until clearer regulations emerge. Bitwise’s plans might evolve pending further regulatory clarity.