SEC approves Bitwise 10 Crypto Index Fund conversion into ETF with 10 cryptocurrencies.

SEC approves Bitwise 10 Crypto Index Fund conversion into ETF with 10 cryptocurrencies.

The U.S. Securities and Exchange Commission (SEC) has taken a significant step in the cryptocurrency market by approving Bitwise's plan to convert its Bitwise 10 Crypto Index Fund (BITW) into an exchange-traded fund (ETF). This approval, which comes with a pause in the conversion process, marks a pivotal moment in the regulatory landscape for digital assets [1].

Bitwise's BITW fund, which was launched in 2017, holds over 90% of its assets in Bitcoin (BTC) and Ethereum (ETH), with the remaining 10% spread across eight major altcoins. The fund manages $1.68 billion in assets and rebalances monthly. The conversion to a spot ETF would make BITW the first multi-asset crypto index ETF in the U.S., if it proceeds [1].

The SEC's approval of BITW's ETF application follows a similar action on Grayscale's multi-asset crypto fund and comes amid several new ETF filings and reviews this week. The SEC's letter on Tuesday stated that "the Commission will review the delegated action," identical wording to the letter Grayscale received when its ETF was paused [1].

The pause in the conversion process is likely due to the need to establish consistent standards for crypto ETFs, particularly for tokens like XRP and ADA that do not yet have standalone ETFs. The SEC's ETF docket has been busy, with several filings from asset managers seeking to amend redemption mechanics for their Bitcoin and/or Ethereum ETFs [1].

The conversion of BITW into an ETF would significantly increase accessibility for investors, allowing them to gain exposure to a diversified basket of leading digital currencies through a familiar, regulated investment vehicle. This move could also attract more institutional capital and conservative investors who prioritize compliance and oversight [2].

However, investors should be prepared for market volatility, management fees, and other considerations that come with investing in a crypto ETF. The SEC's approval is a powerful signal that could catalyze a new wave of innovation and investment in the digital asset space, setting a precedent for other diversified crypto index ETFs [2].

References:
[1] https://www.coindesk.com/policy/2025/07/22/sec-approves-then-pauses-bitwise-s-bid-to-convert-bitw-crypto-index-fund-to-etf
[2] https://bitcoinworld.co.in/crypto-etf-bitwise-approval/