Bitwise's Multi-Asset ETF Approved by SEC but Immediately Suspended, Creating a "Strange Situation" According to Experts
The crypto asset market is witnessing an unusual development as the US Securities and Exchange Commission (SEC) both approved and suspended the multi-asset crypto ETF of Bitwise on the same day. The Bitwise 10 Crypto Index ETF, containing 78.72% bitcoin along with XRP and 8 other digital assets, received approval from the Trading and Markets Division but was immediately suspended pending review by the full Commission.
On July 22, the SEC's Trading and Markets Division quickly approved the proposed rule modification, allowing NYSE Arca to list and trade shares of the Bitwise 10 Crypto Index ETF under Rule 8.500-E. The fund is designed to track the Bitwise 10 Large Cap Crypto Index, allocating weights based on market capitalization adjusted for free float.
According to the portfolio structure as of June 30, 2025, bitcoin dominates with 78.72%, followed by ether at 11.10% and XRP at 4.97%. Other assets include Solana (3.03%), Cardano (0.78%), SUI (0.35%), Chainlink (0.32%), Avalanche (0.28%), Litecoin (0.24%), and Polkadot (0.19%). The fund requires at least 85% of assets to be SEC-approved, while the remaining 15% can be allocated to other digital assets.
Operating Mechanism and Unexpected SEC Suspension
Coinbase Custody Trust will handle crypto asset custody, while BNY Mellon manages cash flow and administrative operations. The Net Asset Value (NAV) is calculated daily based on valuation data from CF Benchmarks Ltd., using aggregated information from major trading platforms.
However, on the same day, the SEC Secretary's Office issued an order suspending the approval decision under Rule 431. According to the official notice, the July 22, 2025 decision will be suspended until the Commission provides further guidance, meaning the full Commission will review the authorized action.
A similar development occurred with Grayscale when they proposed listing the Digital Large Cap Fund under NYSE Arca's Rule 8.500-E. The Trading and Markets Division approved it quickly, but the decision was immediately suspended pending full Commission review.
Nate Geraci, President of Novadius Wealth Management, commented on platform X that this is a "strange situation", expressing the view that both ETFs should be allowed to convert and list as soon as possible. This situation puts the crypto asset market in an uncertain waiting state, with investors and organizations anticipating the emergence of multi-asset ETF products to diversify their investment portfolios in the digital asset field.
