Crypto Market Update: SEC Pauses Bitwise ETF Conversion Soon After Approval
July 23, 2025 — By Giann Liguid & Meagen Seatter
In a surprising move, the U.S. Securities and Exchange Commission (SEC) has temporarily halted the conversion of the Bitwise 10 Crypto Index Fund into an exchange-traded fund (ETF) just after granting initial approval. This development adds a new twist to the evolving regulatory landscape for cryptocurrency investment products.
SEC’s Sudden Pause on Bitwise ETF Conversion
On Tuesday, July 22, the SEC’s Division of Trading and Markets initially approved the Bitwise 10 Crypto Index Fund’s request to convert into an ETF. However, shortly after the approval, the SEC issued a notice staying — or pausing — the order pending further review. The SEC’s Assistant Secretary Sherry Haywood indicated that the conversion will remain on hold “until the Commission orders otherwise.”
Industry observers have expressed confusion over the move. Bloomberg ETF analyst Eric Balchunas speculated that the SEC might be using the pause to set a broader listing standard for crypto ETFs. Nate Geraci, president of NovaDius Wealth Management, described the situation as “bizarre” and drew parallels to a similar scenario involving the Grayscale Digital Large Cap ETF, which also faced an approval followed by a pause earlier this month.
Bitwise’s application for the ETF conversion dates back to November 2024, aiming to provide investors broader exposure to a diversified basket of cryptocurrencies. This pause represents an ongoing challenge for crypto ETFs seeking regulatory clarity in the U.S. market.
Crypto Market Price Highlights as of July 23
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Bitcoin (BTC) traded slightly lower at around $118,148, slipping 0.7% in the last 24 hours. Prices fluctuated between a high of $118,462 and a low of $117,583. Notably, a significant Bitcoin whale moved over $1.2 billion in dormant BTC, stirring speculation about possible selling pressure. Investors rotating from Bitcoin to altcoins took profits after recent gains, coinciding with weaker institutional demand signaled by outflows from spot ETFs.
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Ethereum (ETH) also declined, down 1.9% to $3,592.65, ranging between $3,568.86 and $3,657.02 in the day’s trading.
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Key altcoins faced steeper drops:
- Solana (SOL) fell 5.5% to $188.86.
- XRP dropped 8.9% to $3.25.
- Sui (SUI) decreased 5.5% to $3.70.
- Cardano (ADA) slipped 6.9% to $0.8152. —
Notable Crypto Industry Developments
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PNC Bank and Coinbase Partnership: PNC Bank has teamed up with Coinbase Global (NASDAQ:COIN) to enhance access to digital asset solutions. The partnership will leverage Coinbase’s crypto-as-a-service platform, enabling PNC’s clients to securely buy, hold, and sell cryptocurrencies directly on PNC’s platform. This collaboration also marks PNC’s commitment to supporting the expanding digital financial ecosystem.
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Goldman Sachs and BNY Mellon’s Tokenized Money Market Funds: Goldman Sachs (NYSE:GS) and BNY Mellon (NYSE:BK) announced plans to launch tokenized money market funds on a private blockchain. This initiative aims to offer institutional investors 24/7 access, real-time settlement, and operational efficiencies. The move involves strategic participation from top asset managers, including BlackRock, Fidelity Investments, and Federated Hermes. Unlike interest-bearing stablecoins, these tokenized funds provide yield and low volatility, appealing to hedge funds, pension funds, and corporations.
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Rise in Bitcoin Millionaires: A recent report by Finbold highlights a significant surge in Bitcoin millionaires in 2025, with nearly 16,000 new wallets crossing the $1 million mark since the start of the year. The total has grown by 45% from 132,842 in November 2024 to 192,205 by mid-July 2025. Analysts attribute this sharp rise to renewed investor optimism following former President Donald Trump’s re-election and clearer regulatory frameworks, including the recently passed Genius Act, which is expected to streamline institutional compliance for crypto.
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South Korea’s Financial Watchdog Issues Crypto Warnings: South Korea’s Financial Supervisory Service (FSS) has informally cautioned local asset managers to reduce their holdings in crypto-related stocks and ETFs, particularly those investing in U.S.-listed companies such as Coinbase and MicroStrategy (NASDAQ:MSTR). This follows the FSS’s longstanding position restricting direct virtual asset investments by financial institutions despite global trends toward regulatory easing.
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PayPal Launches ‘PayPal World’ Cross-Border Wallet Platform: PayPal (NASDAQ:PYPL) introduced "PayPal World," a cross-border payments network integrating major digital wallets, including India’s UPI, China’s Weixin Pay, and PayPal’s own Venmo. The platform aims to simplify global commerce by allowing users to pay seamlessly with native wallets regardless of location. PayPal CEO Alex Chriss described the initiative as a “game changer” for frictionless international payments.
Looking Ahead
The SEC’s pause of the Bitwise ETF conversion underscores continued regulatory uncertainty surrounding cryptocurrency investment vehicles in the United States. However, innovations such as tokenized money market funds and cross-border digital wallets indicate growing institutional interest and technological advancements within the crypto sector.
Investors and market participants will be watching closely as further clarity unfolds regarding the SEC’s stance on crypto ETFs and how global regulatory trends influence the expanding digital asset ecosystem.
For ongoing updates, follow @INN_Technology on Twitter.
Disclosures: The authors hold no direct investment interests in companies mentioned.
About the Authors:
Giann Liguid holds a degree in Interdisciplinary Studies from Ateneo De Manila University and covers security, business, and blockchain topics. Meagen Seatter specializes in investment market content, contributing insights into technological advancements in finance.
This article is for informational purposes only and does not constitute investment advice.