Bizarre Crypto Circus: SEC Approval Tango Leaves Markets in Suspense! 🎢💸

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Amidst the blinding lights and bewildered whispers of the crypto realm, a high-profile ETF—a shimmering trove of Bitcoin, Ether, XRP, and all its merry companions—once reveled in the embrace of SEC approval, only to be abruptly halted, leaving eager spectators and market denizens trapped in a web of suspense.

SEC’s Whimsical Stay Stalls the Debut of the Bitwise ETF Featuring Bitcoin, Ether, XRP, and Friends

On a sun-soaked day, July 22, the U.S. Securities and Exchange Commission (SEC) graced us with the sanctification of a grand multi-asset crypto exchange-traded fund (ETF), only to snatch it back as if it were a child’s balloon released into the tempestuous sky. The SEC’s Division of Trading and Markets, in a rare fit of generosity, conferred upon the NYSE Arca the right to flaunt shares of the Bitwise 10 Crypto Index ETF under the schizoid Rule 8.500-E.

This beguiling concoction aspires to shadow the Bitwise 10 Large Cap Crypto Index, a whimsical menagerie of leading digital assets, praise be for their paltry market capitalizations—weighted like a debate on the nature of reality itself. The SEC, in its formal garb, proclaimed:

It is therefore ordered, pursuant to Section 19(b)(2) of the Exchange Act, that the proposed rule change … be, and hereby is, approved on an accelerated basis.

Alas, by June 30, 2025, the Trust’s scorecard reflected a curious array: 78.72% Bitcoin (BTC), 11.10% Ether (ETH), and a mere 4.97% of that elusive XRP (XRP)—not exactly a buffet, but surely a sampling of delights from the cryptographic landscape.

Now, the ETF demands that a staggering 85% of its glittering bounty consists of assets pre-approved by the SEC for exchange-traded escapades, while the remaining 15% meanders freely into the flurry of other digital curiosities. Coinbase Custody Trust, ever the vigilant guardian, shall clutcht the crypto treasure, with The Bank of New York Mellon overseeing the mundane affairs of cash and administration. Daily, the net asset value shall be conjured from the vaults of CF Benchmarks Ltd., a figure plucked from the whispers of major trading platforms.

Yet, shortly after the joyful commencement, the SEC’s Office of the Secretary dashed hopes with a stay, as if writing a cliffhanger suitable for the finest of soap operas: “This letter is to notify you that, pursuant to Rule 431 of the Commission’s Rules of Practice, 17 CFR 201.431, the Commission will review the delegated action. In accordance with Rule 431(e), the July 22, 2025 order is stayed until the Commission orders otherwise.” What a plot twist, indeed!

Regrettably, a dénouement not unlike this ensnared a recent venture from Grayscale, which also sought the spotlight under the same NYSE Arca Rule 8.500-E. As echoes of accelerated approval lingered in the air, alas, it too was gripped by the whimsical hands of delay. Nate Geraci, president of Novadius Wealth Management—a title that sounds far more glamorous than it feels—ventured a wry musing on social media platform X:

SEC Division of Trading & Markets has approved the Bitwise 10 Crypto Index ETF… However, like with the Grayscale Digital Large Cap ETF, this approval order is stayed. IMO, both of these should be allowed to convert/uplist ASAP. Bizarre situation.

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2025-07-24 02:57