XRP News Today: SEC approves and halts Bitwise crypto ETF, XRP drops 8.9%

The U.S. Securities and Exchange Commission (SEC) has created a regulatory paradox by approving and then halting the launch of Bitwise’s 10 Crypto Index ETF, a multi-asset fund featuring XRP alongside Bitcoin, Ethereum, and other major digital currencies. The agency’s Division of Trading and Markets initially granted accelerated approval on July 22, 2025, under Rule 8.500-E, allowing NYSE Arca to list shares of the ETF. However, the same day, the SEC’s Office of the Secretary issued a stay under Rule 431, suspending the decision pending full Commission review [1]. This abrupt reversal has left market participants in uncertainty, with experts labeling the situation “bizarre” and questioning the agency’s inconsistent approach to crypto fund approvals [2].

The Bitwise ETF, structured to track the Bitwise 10 Large Cap Crypto Index, holds a diversified portfolio weighted by free-float market capitalization. As of June 30, 2025, the fund allocated 78.72% to Bitcoin, 11.10% to Ethereum, 4.97% to XRP, and smaller portions to Solana, Cardano, and other assets [1]. At least 85% of holdings must comply with SEC-approved assets for exchange-traded products, with custodial services managed by Coinbase Custody Trust and administrative operations overseen by The Bank of New York Mellon. The ETF’s net asset value is calculated daily using CF Benchmarks Ltd. pricing, aggregated from major trading platforms [1].

This is the second consecutive instance of the SEC approving and then halting a crypto ETF. On July 1, 2025, the agency similarly approved Grayscale’s Digital Large Cap ETF before imposing a stay. The pattern has drawn criticism for creating procedural ambiguity, with Nate Geraci of Novadius Wealth Management arguing that both applications should be allowed to convert to ETFs immediately [2]. Market reactions followed: XRP’s price dropped 8.9% in 24 hours after the Bitwise decision [3], reflecting investor concern over regulatory delays.

The SEC’s hesitation appears tied to broader debates over crypto fund frameworks. Bloomberg ETF analyst Eric Balchunas suggested the agency may be delaying approvals to establish standardized criteria for crypto ETFs [4]. This aligns with the SEC’s dual role as both an enforcer of securities laws and a regulator of emerging markets. While staff-level approvals indicate openness to innovation, the Commission’s interventions highlight unresolved debates about classifying digital assets. This tension is compounded by the SEC’s ongoing enforcement actions, such as its legal battle with Ripple Labs over XRP’s status as a security [4].

The situation underscores the SEC’s struggle to balance regulatory oversight with market development. Bitwise’s ETF, which offers diversified exposure to major digital assets, could attract institutional investors if regulatory hurdles are resolved. However, the lack of clarity has left market participants cautious. Futures-based XRP ETFs remain stalled pending formal rules from the Commission [5], and the precedent set by recent stays could prolong approval processes for other crypto ETFs.

Despite regulatory headwinds, the crypto market has shown resilience. Recent developments, including the approval of stablecoin regulations via the GENIUS Act and a 45% increase in Bitcoin millionaires since January 2025, signal growing institutional adoption [6]. Yet the SEC’s inconsistent actions risk undermining confidence. By pausing conversions at the staff level, the agency has created a regulatory vacuum that could deter capital inflows and slow innovation.

The outcome of the Bitwise and Grayscale cases may set a precedent for future crypto ETF applications. For now, the market awaits the SEC’s final decision, with the agency’s actions poised to shape the next phase of crypto’s integration into traditional finance.

Sources:

[1] Decrypt, [https://decrypt.co/331357/sec-halts-another-etf-holding-bitcoin-ethereum-xrp](https://decrypt.co/331357/sec-halts-another-etf-holding-bitcoin-ethereum-xrp)

[2] TradersUnion, [https://tradersunion.com/news/cryptocurrency-news/show/374994-sec-halts-bitwise-crypto-index/](https://tradersunion.com/news/cryptocurrency-news/show/374994-sec-halts-bitwise-crypto-index/)

[3] Economic Times, [https://m.economictimes.com/news/international/us/xrp-sinks-6-percent-again-as-sec-delays-bitwise-crypto-etf-is-the-dip-a-red-flag-or-a-golden-buy-signal-heres-the-2025-xrp-price-prediction-you-need-to-see/articleshow/122859722.cms](https://m.economictimes.com/news/international/us/xrp-sinks-6-percent-again-as-sec-delays-bitwise-crypto-etf-is-the-dip-a-red-flag-or-a-golden-buy-signal-heres-the-2025-xrp-price-prediction-you-need-to-see/articleshow/122859722.cms)

[4] InvestingNews, [https://investingnews.com/cryptocurrency-market-recap/](https://investingnews.com/cryptocurrency-market-recap/)

[5] X (ThePulseWallet), [https://x.com/ThePulseWallet/status/1948064527750447375](https://x.com/ThePulseWallet/status/1948064527750447375)

[6] Finbold, [https://investingnews.com/cryptocurrency-market-recap/](https://investingnews.com/cryptocurrency-market-recap/)