Crypto Market Update: SEC Pauses Bitwise ETF Conversion Following Initial Approval
By Giann Liguid and Meagen Seatter | July 23, 2025
In a surprising development in the cryptocurrency investment landscape, the US Securities and Exchange Commission (SEC) has temporarily stalled the conversion of the Bitwise 10 Crypto Index fund into an exchange-traded fund (ETF), days after initially granting approval. This move adds to the mix of market pressures and regulatory decisions shaping crypto asset trading and investor confidence.
SEC Decision: Pause on Bitwise Crypto Index ETF Conversion
On Tuesday, July 22, 2025, the SEC’s Division of Trading and Markets approved Bitwise’s application for converting its 10 Crypto Index fund into an ETF, a move that many viewed as a step toward broader mainstream adoption of cryptocurrency investment products. However, within hours, the SEC issued a letter from Assistant Secretary Sherry Haywood indicating the approval was put on hold pending further review. The order will remain "stayed until the Commission orders otherwise."
Bloomberg ETF analyst Eric Balchunas speculated that the SEC might be delaying final approval in favor of establishing a clearer listing standard for crypto ETFs, a regulatory framework that has remained uncertain despite growing market demand. Industry insiders have drawn parallels to a similar scenario involving Grayscale’s Digital Large Cap ETF, which saw an analogous approval followed by a pause earlier in July, with some investors describing the situation as “bizarre.”
Market Overview: Bitcoin, Ethereum, and Altcoin Movements
As of 9:00 p.m. UTC on Wednesday, July 23, Bitcoin (BTC) was trading slightly down by 0.7% at approximately $118,148. Bitcoin’s value fluctuated between $117,583 and $118,462 over the past 24 hours. A notable market event included the movement of over $1.2 billion in dormant Bitcoin by a significant whale, sparking speculation about large sell-offs. Following a rotation into altcoins, investors took profits after recent highs, and outflows from spot ETFs hinted at reduced institutional demand.
Ethereum (ETH) experienced a sharper dip of 1.9%, priced at about $3,592.65, with a low of $3,568.86 and a high of $3,657.02 throughout the day.
Key altcoins also saw notable losses:
- Solana (SOL) declined 5.5% to $188.86.
- XRP was down 8.9%, trading near $3.25.
- Sui (SUI) dropped 5.5% to $3.70.
- Cardano (ADA) fell 6.9% to $0.8152. —
Noteworthy Industry Partnerships and Innovations
In other significant industry news, PNC Bank and Coinbase Global announced a strategic collaboration aimed at expanding secure and scalable digital asset services for institutional and individual clients of PNC. By integrating Coinbase’s crypto-as-a-service platform directly within PNC’s infrastructure, clients will soon be able to buy, hold, and sell cryptocurrencies through PNC’s existing platforms. PNC will also offer crucial banking services to Coinbase, reflecting a mutual push toward strengthening the digital financial ecosystem.
Goldman Sachs and BNY Mellon to Launch Tokenized Money Market Funds
Goldman Sachs and BNY Mellon are preparing to deliver tokenized money market funds to institutional clients, utilizing blockchain technology to offer real-time settlement and 24/7 fund access—marking a significant step in modernizing capital markets. The ownership of these funds will be recorded on a private blockchain maintained by Goldman Sachs, with participation from asset management giants like BlackRock, Fidelity, and Federated Hermes.
Laide Majiyagbe, Global Head of Liquidity, Financing, and Collateral at BNY, underscored the firm’s commitment to "scalable and secure solutions" that will advance the future of finance. These tokenized funds, unlike interest-bearing stablecoins barred under the recent GENIUS Act, provide low-volatility yields suited to hedge funds, pension funds, and corporations.
Wider Industry and Regulatory Updates
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Bitcoin Millionaires Surge: A recent Finbold report highlights a surge of nearly 16,000 Bitcoin wallets reaching millionaire status since January 2025, following the re-election of President Donald Trump. The number jumped from approximately 132,842 in November 2024 to 192,205 by mid-July. Favorable policy signals, such as the passage of the GENIUS Act—considered the most comprehensive U.S. federal crypto regulatory framework—have accelerated capital inflows.
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South Korea’s Regulatory Warnings: South Korea’s Financial Supervisory Service (FSS) has issued informal warnings to asset managers with significant holdings in crypto-related stocks and ETFs, including those tied to Coinbase and MicroStrategy. Despite ongoing reviews for possible easing of rules, direct investments by financial institutions in virtual assets remain restricted, according to longstanding guidelines dating back to 2017. – PayPal World Launch: PayPal has unveiled "PayPal World," a cross-border payments platform integrating major digital wallets from India, China, Latin America, and PayPal’s own Venmo service. CEO Alex Chriss described the initiative as potentially transformative for frictionless international commerce, simplifying cross-border payments for nearly two billion users.
Looking Ahead
The evolving landscape of cryptocurrency regulation and adoption underscores a critical crossroads between institutional interest and governmental oversight. The SEC’s cautious approach to ETF approvals reflects an ongoing balancing act in shaping a sustainable and secure market environment. Meanwhile, technological advancements such as tokenized funds and cross-border payment networks continue to pave the way for broader digital asset integration.
Readers are encouraged to stay updated on these developments by following real-time news sources and market analysis platforms.
For continuous crypto market updates, follow @INN_Technology on social media.
Disclosures: The authors hold no direct investment interest in any companies mentioned.
Contact: Giann Liguid and Meagen Seatter are investment market content specialists reporting on blockchain and technology investing news.