Crypto Market Update: SEC Pauses Bitwise ETF Conversion Shortly After Granting Approval
July 23, 2025 – The latest developments in the digital asset space as regulatory actions and institutional moves shape market dynamics.
On Tuesday, the U.S. Securities and Exchange Commission (SEC) made headlines by initially approving the conversion of Bitwise’s 10 Crypto Index Fund into an exchange-traded fund (ETF), only to immediately place the approval on hold pending further review. This unexpected pause has prompted speculation across the crypto investment community, underscoring ongoing regulatory uncertainty in the evolving digital asset sector.
SEC’s Sudden Halt on Bitwise ETF Conversion
The SEC’s Division of Trading and Markets approved Bitwise’s application for its crypto index fund to convert into an ETF, a product that would provide investors with broad exposure to a diversified basket of cryptocurrencies. The approval, however, was quickly stayed by a directive from SEC Assistant Secretary Sherry Haywood, who stipulated that the order would remain “stayed until the Commission orders otherwise.”
Industry observers, including Bloomberg ETF analyst Eric Balchunas, suggest this delay might be part of the SEC’s effort to establish clearer listing standards and regulatory frameworks for crypto ETFs. Bitwise originally filed for this conversion back in November 2024, reflecting significant investor appetite for regulated crypto investment vehicles. The pause bears similarities to the recent halt on the Grayscale Digital Large Cap ETF conversion earlier this month, raising questions about the speed and certainty of SEC approvals in this space.
Nate Geraci, president of NovaDius Wealth Management, described the situation as “bizarre,” highlighting the unpredictable regulatory environment that continues to challenge crypto fund managers.
Market Reaction: Bitcoin and Ethereum Prices Slip
As of Wednesday evening (July 23, 2025), Bitcoin (BTC) was trading near $118,148, down 0.7% in the last 24 hours. Bitcoin’s trading range on the day was between $117,583 and $118,462, with market pressure influenced by a large Bitcoin whale moving over $1.2 billion of dormant BTC, sparking speculation of potential sell-offs.
Ethereum (ETH) mirrored this downturn, trading around $3,592.65, down 1.9% in twenty-four hours. Other notable altcoins experienced even sharper declines: Solana (SOL) dropped 5.5% to approximately $188.86; XRP fell 8.9% to $3.25; while Cardano (ADA) slipped 6.9%, trading near $0.81. The declines reflect a rotation from altcoins and profit-taking following recent price highs, accompanied by outflows from spot crypto ETFs indicative of weakening institutional demand.
Institutional Moves and Regulatory Shifts
In other crypto-related developments, Goldman Sachs and BNY Mellon announced a joint initiative to launch tokenized money market funds accessible to institutional investors. These funds will utilize Goldman Sachs’ private blockchain for real-time settlement and will offer increased market efficiency compared to traditional products.
This innovation involves major asset management players including BlackRock, Fidelity Investments, Federated Hermes, and the asset management arms of Goldman Sachs and BNY. Tokenized money market funds are carefully distinguished from interest-bearing stablecoins, which are prohibited under the recently enacted GENIUS Act—a comprehensive federal crypto regulatory framework passed by the U.S. House this week aimed at streamlining compliance for institutional crypto products.
On the banking front, PNC Bank and Coinbase Global have formed a strategic partnership to expand digital asset services, enabling PNC customers to buy, hold, and sell cryptocurrencies securely through PNC’s platform.
However, regulatory skepticism remains globally. South Korea’s Financial Supervisory Service (FSS) has informally warned domestic fund managers to reduce exposure to crypto-related stocks and ETFs, reinforcing a conservative stance despite ongoing international gains in regulatory clarity.
Bitcoin Millionaires Surge Amid Optimism
Meanwhile, investor confidence appears to be bolstered by the changing regulatory environment in the United States. According to a Finbold report, the number of Bitcoin wallets holding over $1 million in value surged by nearly 16,000 in the first seven months of 2025, a 45% increase since November 2024. This growth coincides with Donald Trump’s re-election and the passage of the GENIUS Act, signaling clearer federal guidelines and increased institutional participation.
PayPal Launches International Wallet Network
PayPal has also entered the cross-border payments arena with its newly unveiled PayPal World platform. This initiative connects major digital wallets from India, China, Latin America, and its own services (including Venmo), facilitating seamless international transactions for nearly two billion users worldwide. PayPal CEO Alex Chriss hailed this platform as a “game changer” for simplifying frictionless payments in travel and e-commerce sectors.
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Disclaimer: The authors of this article hold no direct investment interest in mentioned companies.