SEC Puts Sudden Stop to Bitwise ETF With XRP Exposure

SEC unexpectedly halted Bitwise’s ETF hours after initial approval, delaying access to XRP and major altcoins through a regulated product.

The fund is now under further SEC review as the agency works on a broader framework for spot altcoin ETFs.

A final decision on Bitwise’s separate spot XRP ETF filing is due by October 20, with market sentiment favoring eventual approval.

The U.S. Securities and Exchange Commission has unexpectedly paused the conversion of Bitwise’s 10 Crypto Index Fund into an exchange-traded fund. The move came shortly after the SEC’s Division of Trading and Markets had granted initial approval for the conversion, which would have offered investors exposure to XRP and several major altcoins.

The reversal occurred just hours after the first nod from the SEC, raising confusion across the market. ETF analyst Nate Geraci described the development as “bizarre,” highlighting a similar pattern seen previously with the Grayscale Digital Large Cap ETF. In both instances, staff approvals were followed by sudden stops, with no official explanation from the regulator.

XRP and Altcoin Access on Hold

Had the conversion gone through, the Bitwise fund would have granted direct exposure to a mix of cryptocurrencies, including XRP. This pause marks a delay for institutional investors seeking diversified exposure to digital assets through regulated products. The move adds uncertainty around the timeline for broader ETF approval involving altcoins.

According to sources familiar with the matter, the SEC has now placed the product under further review. Analysts believe the regulatory body may be working on a broader listing framework for spot altcoin ETFs. This framework is expected to be completed before the end of 2025, although no firm dates have been provided.

Spot XRP ETF Deadline Approaching

Bitwise had also filed separately for a spot XRP ETF in October of last year. The deadline for a final decision from the SEC on that product is scheduled for October 20, 2025. Despite current delays, the market continues to expect eventual approval. Polymarket data shows an 85 percent probability that a spot XRP ETF will be approved by the end of the year.

Although spot-based access remains blocked, U.S. investors can still gain exposure to XRP and Solana through leveraged and futures-based ETFs. CME data has shown increased activity, with XRP futures recently reaching a new trading high. This demonstrates growing institutional interest despite current regulatory obstacles.

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