In a move that has stirred confusion and frustration across the crypto community, the U.S. Securities and Exchange Commission (SEC) has once again triggered controversy, this time involving Bitwise’s spot ETF proposal. After granting initial approval to convert the Bitwise 10 Crypto Index Fund (BITW) into a spot exchange-traded fund (ETF), the SEC abruptly hit the brakes, pausing the approval without a clear explanation. Initial Approval, Then a Sudden Pause On July 22, the SEC’s Division of Trading and Markets approved Bitwise’s request to list its crypto index fund as a spot ETF on NYSE Arca under Rule 8.500‑E. The fund, which includes Bitcoin, Ethereum, XRP, Cardano (ADA), Solana (SOL), and several other major altcoins, was expected to become the first diversified crypto ETF available to U.S. investors. : SEC playing games again? They approved Bitwise’s crypto ETF then paused it… why? Because it includes $XRP & $ADA no standalone ETFs yet. Same trick they pulled on Grayscale. Political game or fair review? You decide. https://t.co/G6JOaJiWXc pic.twitter.com/hXMjEkdHs2 — 𝕏aif | (@Xaif_Crypto) July 23, 2025 However, just hours later, the SEC’s Office of the Secretary stepped in under Rule 431(e), halting the approval and announcing a full Commission-level review. No specific concerns were cited, but the timing and context suggest deeper regulatory caution around certain altcoins, especially XRP and ADA, which do not yet have standalone ETF approvals. XRP, ADA, and the Shadow of Uncertainty The SEC’s hesitation appears tied to the inclusion of XRP and ADA in Bitwise’s fund. While Bitcoin and Ethereum already have SEC-approved spot ETFs, altcoins like XRP and Cardano remain in a regulatory gray zone. Their presence in a multi-asset ETF could be seen as premature by the Commission, which is likely aiming to establish clear frameworks for these tokens before greenlighting broader exposure. This pattern mirrors what recently happened with Grayscale’s Digital Large Cap Fund (GDLC). That product also received staff-level approval for ETF conversion, only to be paused in the same manner once the Commission became involved. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 A Repeat of the Grayscale Scenario Grayscale’s halted ETF launch earlier this month raised similar concerns. Their fund also includes XRP, ADA, and SOL, which likely triggered the SEC’s intervention. Grayscale argued the pause harms investors and considered legal action . Bitwise may soon echo that response, especially given the lack of transparency behind the Commission’s abrupt reversals. Nate Geraci, President of ETF Store, called the SEC’s move “bizarre,” describing the sudden post-approval reviews as both procedural and political. Is This Fair Regulation, or Politics at Play? Crypto analysts and investors are split on the SEC’s motives. Some believe the agency is simply being cautious, waiting for clearer legal precedent around altcoins before approving ETFs that include them. Others see the pattern as part of a broader political game, using bureaucratic tools like Rule 431 to delay progress without making formal denials. Xaif, a prominent crypto commentator on X, summed up public sentiment with a pointed post: “SEC playing games again? They approved Bitwise’s crypto ETF then paused it… why? Because it includes XRP & ADA. No standalone ETFs yet. Same trick they pulled on Grayscale. Political game or fair review? You decide.” What Happens Next? All eyes now turn to an expected SEC closed-door meeting later this week, where the agency may also discuss whether to drop its appeal in the Ripple case. A favorable decision there could pave the way for an XRP-specific ETF, and, by extension, the eventual approval of altcoin-inclusive index products like Bitwise’s. For now, Bitwise’s spot ETF sits in limbo, and with it, the hopes of retail and institutional investors seeking diversified crypto exposure through regulated channels. Whether this is prudent regulation or a strategic delay remains a matter of debate, but what’s clear is that the SEC is once again at the center of crypto’s most pressing standoff. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post SEC Approves and Pauses Bitwise XRP ETF. Here’s the Latest appeared first on Times Tabloid .
