The US Securities and Exchange Commission (SEC) on 22 July granted accelerated approval for NYSE Arca to list the Bitwise 10 Crypto Index ETF, a multi-asset product whose underlying portfolio includes XRP, Solana, Cardano and seven other digital assets alongside Bitcoin and Ether. The order, published as Release No. 34-103531, concluded that the proposal was “consistent with Section 6(b)(5) of the Exchange Act” because it is designed “to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, [and] to protect investors and the public interest.
Almost immediately after the Division of Trading & Markets issued its delegated approval, the Commission’s Office of the Secretary intervened. In a brief letter citing Rule 431 of the SEC’s Rules of Practice, Assistant Secretary Sherry R. Haywood notified NYSE Arca that “the Commission will review the delegated action” and that, “in accordance with Rule 431(e), the July 22 order is stayed until the Commission orders otherwise. The stay freezes the conversion process and leaves BITW in its current OTC-traded form.
While the stay has no immediate impact on BITW shareholders, Bitwise has argued that an NYSE-listed ETF would tighten spreads, eliminate premium-discount dislocations and broaden distribution through brokerage platforms that refuse to handle OTC products. In its submission the company also contended that regulated exchange trading “will enhance transparency and investor protection” by subjecting the shares to the consolidated tape and the Exchange Act’s reporting framework.
For now, the fund’s fate rests with a Commission that is visibly wrestling with the speed at which to open the US market to diversified crypto exposure. Until the review concludes, investors eager for a regulated vehicle that bundles Bitcoin, Ether, XRP and other large-cap altcoins will have to wait — or continue relying on OTC trusts that lack the structural safeguards of an ETF.
At press time, XRP traded at $3.349.
