Crypto Market Update: SEC Pauses Bitwise ETF Conversion Shortly After Approval
July 23, 2025 — By Giann Liguid and Meagen Seatter
The cryptocurrency market witnessed significant developments on Wednesday, July 23, as the U.S. Securities and Exchange Commission (SEC) surprisingly paused the conversion of Bitwise’s 10 Crypto Index Fund into an exchange-traded fund (ETF) soon after granting initial approval. This move has injected uncertainty into the crypto investment landscape, even as major financial institutions continue to innovate within the space.
SEC Halts Bitwise ETF Conversion for Review
On July 22, the SEC’s Division of Trading and Markets approved Bitwise’s application to convert its Crypto Index fund into an ETF. However, just hours later, the Commission issued a stay, effectively pausing the conversion process until further notice.
In a statement, SEC Assistant Secretary Sherry Haywood explained that the order would remain “stayed until the Commission orders otherwise,” leaving the decision in suspense. Bloomberg ETF analyst Eric Balchunas speculated that the SEC might be delaying final approval as it works toward establishing a comprehensive listing standard specifically for crypto ETFs.
Bitwise initially filed for the conversion last November, aiming to offer investors broader access to a diversified basket of cryptocurrencies via a more liquid, ETF structure. Nate Geraci, president of NovaDius Wealth Management, described the scenario as “bizarre,” noting parallels to the recent pause on a similar conversion attempt by Grayscale Digital Large Cap ETF earlier this month.
Market Reaction: Bitcoin and Ethereum See Slight Pullbacks
In response to mixed regulatory signals and profit-taking in the wake of recent highs, Bitcoin (BTC) and Ethereum (ETH) experienced modest declines over the past 24 hours.
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Bitcoin traded near US$118,148, representing a 0.7% drop. The coin fluctuated between US$117,583 and US$118,462 during the day. A substantial movement of US$1.2 billion worth of dormant BTC from a whale investor prompted speculation about potential selling pressure.
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Ethereum fell 1.9% to US$3,592.65, ranging between US$3,568.86 and US$3,657.02. Among altcoins, several notable declines included Solana (SOL) down 5.5% at US$188.86, XRP slipping 8.9% to US$3.25, and Cardano (ADA) dropping 6.9% to US$0.8152. The market dynamics were influenced by profit-taking from altcoin rotations and outflows from spot crypto ETFs, indicating some cooling institutional demand.
Institutional Collaboration: Goldman Sachs and BNY Launch Tokenized Money Market Funds
In a move highlighting growing institutional adoption of blockchain technology, Goldman Sachs and Bank of New York Mellon (BNY) announced plans to launch tokenized money market funds.
Set to roll out soon, these funds will allow institutional investors to enjoy benefits such as real-time settlement, 24/7 accessibility, and increased operational efficiency through token ownership recorded on Goldman Sachs’ private blockchain.
Laide Majiyagbe, global head of liquidity, financing and collateral at BNY, emphasized the importance of enabling scalable, secure solutions as financial systems evolve toward real-time digital architectures. The initiative involves prominent players, including BlackRock, Fidelity, Federated Hermes, and asset management units of both Goldman Sachs and BNY.
Unlike interest-bearing stablecoins, which the recently enacted GENIUS Act explicitly prohibits, tokenized money market funds offer yield and lower volatility, making them appealing tools for hedge funds, pensions, and corporations.
PNC Bank and Coinbase Form Strategic Partnership
Furthering expansion into digital assets, PNC Bank and Coinbase Global confirmed a strategic partnership to provide PNC’s clients and institutional investors with more secure, scalable access to cryptocurrency trading and custody services.
Via Coinbase’s crypto-as-a-service platform, PNC customers can directly buy, hold, and sell cryptocurrencies through the bank’s interface. The partnership also includes banking services for Coinbase, underpinning their shared commitment to strengthening the digital financial ecosystem.
Other Noteworthy Crypto Industry Updates:
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Bitcoin Millionaires Surge: A recent Finbold report revealed nearly 16,000 new Bitcoin wallets crossed the million-dollar valuation threshold in 2025, a 45% increase since November 2024. This surge is linked to renewed investor optimism following U.S. regulatory clarity and President Donald Trump’s re-election.
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South Korea’s Financial Supervisory Service (FSS) Issues Warning: The FSS has cautioned fund managers to reduce exposure to crypto-related stocks and ETFs, maintaining its 2017 ban on direct virtual asset investments by financial institutions, despite increasing global acceptance.
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PayPal Launches Cross-Border Wallet Platform: PayPal unveiled PayPal World, a platform integrating major digital wallets worldwide, including India’s UPI, China’s Weixin Pay, and PayPal’s Venmo, to facilitate seamless international payments for nearly two billion users.
Looking Ahead
The SEC’s decision to pause the Bitwise ETF conversion exemplifies the ongoing regulatory balancing act around embracing digital assets while protecting investors. Meanwhile, moves by traditional financial institutions to leverage blockchain and tokenization signal a maturing and more integrated crypto market. Investors should monitor policy developments and assess evolving institutional adoption trends in the coming weeks.
For real-time updates and comprehensive crypto market coverage, follow @INN_Technology.
Securities Disclosure: The authors hold no direct investment interest in any companies mentioned.
Giann Liguid and Meagen Seatter contribute to Investing News Network’s coverage of blockchain technology and cryptocurrency markets.