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Bitwise, a company that manages crypto investments, was all set to turn one of its crypto funds into a special kind of investment called an ETF. The U.S. government’s financial watchdog, the SEC (Securities and Exchange Commission), first said yes, then suddenly hit pause.
On July 22, 2025, Bitwise got quick approval from part of the SEC to launch its ETF. This approval was exciting news for crypto fans because it seemed like the government was finally warming up to more mainstream crypto investments. But only a few hours later, another official at the SEC hit the brakes, saying the decision needed more review. Now, everything is on hold.
Bitwise isn’t alone. Grayscale, another big player in the crypto world, also had its ETF approval put on ice shortly after being approved. Both companies are trying to create safer, more regulated ways for everyday investors to buy into crypto, but the SEC keeps stopping just short of letting it happen.
Experts think the back-and-forth is due to internal politics within the SEC. Some members seem more open to crypto, while others are more sceptical. One theory is that certain approvals are being quietly challenged from within the Commission itself, possibly by crypto-wary officials like Caroline Crenshaw.
Another idea? The SEC might be trying to delay decisions until it can roll out new rules for all crypto-based ETFs. That way, they can create a more consistent and organised process instead of handling each request one by one.
Since Donald Trump returned to the presidency in 2025, crypto companies feel the government is more open to digital assets. The SEC is reviewing several crypto ETF applications right now, including ones focused on Solana, Dogecoin, and even Shiba Inu.
There’s even talk that the SEC may make the process easier soon by simplifying applications and cutting out some red tape.
For now, Bitwise is stuck in limbo. Their ETF isn’t cancelled, but it’s not moving forward either. Investors and crypto watchers are left wondering when, or if, the SEC will finally give a firm yes to these kinds of products.