SEC Halts Bitwise Crypto ETF Approval Over XRP ADA Inclusion Spurring Regulatory Debate
The U.S. Securities and Exchange Commission (SEC) has sparked debate after initially approving and then pausing the conversion of Bitwise’s 10 Crypto Index Fund (BITW) into a spot exchange-traded fund (ETF). The decision, made on July 22, involved a reversal that left the crypto community questioning the regulator’s rationale. Initially, the SEC’s Division of Trading and Markets approved the ETF’s listing on NYSE Arca under Rule 8.500-E, positioning it as the first diversified crypto ETF for U.S. investors. The fund includes Bitcoin, Ethereum, XRP, Cardano (ADA), Solana (SOL), and other major altcoins [1].
However, hours later, the SEC’s Office of the Secretary invoked Rule 431(e) to halt the approval, triggering a full…
