XRP News Today: SEC Halts Bitwise Crypto ETF Hours After Approval, XRP Drops 6%

The U.S. Securities and Exchange Commission (SEC) has triggered controversy after temporarily halting the approval of Bitwise’s proposed crypto exchange-traded fund (ETF), which includes exposure to Bitcoin, Ethereum, and XRP. The agency initially granted staff-level clearance to the ETF on July 2, only to revoke the decision hours later under Rule 431(e), a provision allowing for further review of filings. This abrupt reversal has raised questions about regulatory consistency and fueled criticism from industry experts, who describe the situation as “bizarre” and a sign of the SEC’s growing unpredictability in handling crypto fund applications [1][2].

The halted ETF would have allocated a portion of its portfolio to XRP, a digital asset that has faced prolonged legal battles with the SEC over allegations of securities law violations. While the agency has not publicly explained its reversal, the move aligns with prior patterns of delay, such as a 2023 incident where another crypto ETF faced a similar pause after initial approval. Market analysts suggest the decision reflects the SEC’s struggle to balance investor protection with fostering innovation in crypto markets. “This inconsistency undermines market confidence and complicates product development for asset managers,” said an industry source [4].

The reversal also impacted XRP’s price, which fell 6% in the days following the announcement as traders responded to heightened uncertainty [5]. Critics have raised transparency concerns about Bitwise’s fund, particularly regarding its composition and governance structures [6]. Meanwhile, the SEC’s selective enforcement—such as approving futures-based Bitcoin ETFs in 2021 but repeatedly blocking spot ETFs—has deepened industry frustration.

The delay underscores broader tensions in crypto regulation. Institutions like Fidelity and BlackRock have recently submitted applications for in-kind creation of Bitcoin ETFs, signaling increased institutional interest. However, the lack of standardized guidelines has left the sector in regulatory limbo. Legal experts argue the SEC’s approach appears reactive rather than proactive, noting that the agency’s internal coordination remains inconsistent. Staff-level approvals are occasionally overridden by higher-level decisions, prompting calls for a more transparent and coherent regulatory process [8].

The situation highlights the challenges of navigating a rapidly evolving market. While the SEC emphasizes investor protection, its actions risk stifling innovation by creating uncertainty for fund providers and investors. For now, the future of Bitwise’s ETF—and the broader crypto fund ecosystem—hinges on the agency’s ability to resolve internal conflicts and establish a clear regulatory framework.

Sources:

[1] [Decrypt, 2025](https://decrypt.co/331357/sec-halts-another-etf-holding-bitcoin-ethereum-xrp)

[2] [MoneyCheck, 2025](https://moneycheck.com/bitwises-crypto-etf-halted-by-sec-after-initial-approval-this-week/)

[4] [TradersUnion, 2025](https://tradersunion.com/news/cryptocurrency-news/show/374994-sec-halts-bitwise-crypto-index/)

[5] [Economic Times, 2025](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)

[6] [Stocktwits, 2025](https://stocktwits.com/symbol/ADA.X)

[8] [Stocktwits, 2025](https://stocktwits.com/symbol/ADA.X)