Bitcoin News Today: SEC Extends Review of Bitwise 10 Crypto ETF to July 31, 2025 as $1.68B AUM Under Scrutiny

The U.S. Securities and Exchange Commission (SEC) has extended its review period for the Bitwise 10 Crypto Index Fund’s proposed conversion to an exchange-traded fund (ETF), with a final decision now expected by July 31, 2025. The delay has drawn widespread attention from market participants and investors, who are closely monitoring the outcome. The fund, which tracks a diversified basket of 10 cryptocurrencies, has been under scrutiny as the SEC evaluates structural and regulatory challenges tied to crypto-based ETFs.

Bitwise Investment Advisers, the fund sponsor, has not issued any public updates regarding the current status of the application. The fund continues to trade under the ticker BITW on the OTCQX market, with Coinbase serving as custodian. The extended timeline reflects the SEC’s broader caution in addressing concerns such as market manipulation risks, investor protection, and the viability of in-kind redemption models for crypto assets. The agency has emphasized the need for further analysis before reaching a final determination.

Market reactions to the delay have remained muted, with no significant price movements observed in the fund’s underlying assets, including Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). However, the prolonged review has heightened industry anticipation. Analysts note that the SEC’s engagement with industry stakeholders suggests a focus on refining technical frameworks rather than outright rejecting the proposal. This approach aligns with the agency’s recent openness to in-kind redemption structures, which could enhance liquidity and tax efficiency for crypto ETFs.

The Bitwise 10 Crypto Index Fund has reported assets under management (AUM) of $1.68 billion as of July 2025, underscoring sustained investor interest in diversified crypto exposure. While the ETF conversion remains pending, the fund’s existing structure continues to attract attention, particularly as it positions itself as one of the few proposals exploring in-kind redemption models. This mechanism allows institutional investors to exchange baskets of crypto assets for ETF shares, potentially bridging gaps between traditional financial markets and crypto infrastructure.

The SEC’s deliberations are occurring amid a broader regulatory shift toward standardizing crypto ETPs (exchange-traded products). Recent filings from exchanges like Cboe and Nasdaq indicate a coordinated industry effort to align crypto ETFs with conventional market mechanics. For example, Cboe has submitted amendments to enable in-kind creation and redemption for multiple crypto ETFs, while Nasdaq seeks similar changes for BlackRock’s iShares Bitcoin Trust. These moves highlight growing consensus on the operational benefits of in-kind models, including reduced liquidity friction and improved cost efficiency.

Approval of the Bitwise 10 ETF could mark a pivotal moment in crypto market regulation, potentially spurring institutional adoption and investor inflows. If granted, the fund’s structure may serve as a blueprint for future crypto ETPs, offering a regulated, liquid avenue for accessing diversified digital asset portfolios. However, the SEC’s final decision will hinge on its assessment of market readiness, regulatory alignment, and risk mitigation strategies. The agency’s extended timeline underscores the complexity of integrating crypto assets into traditional financial frameworks while balancing innovation with investor safeguards.

As the July 31, 2025 deadline approaches, market participants remain cautiously optimistic. The outcome will not only determine the fate of the Bitwise 10 ETF but also influence the broader trajectory of crypto ETF development. A favorable ruling could signal a new era for crypto investing, while a rejection might reinforce the SEC’s current hesitance toward spot crypto ETFs. Either way, the process highlights the SEC’s evolving approach to crypto regulation, with a focus on refining operational details rather than stifling innovation outright.