SEC halts Ripple, Solana, and Cardano ETF
On July 22, 2025, the crypto sector looked to be celebrating a historic breakthrough: the U.S. regulator SEC unexpectedly approved the Bitwise 10 Crypto Index ETF, a broadly diversified fund with Bitcoin and Ethereum alongside altcoins.
On July 22, 2025, the crypto sector looked to be celebrating a historic breakthrough: the U.S. regulator SEC unexpectedly approved the Bitwise 10 Crypto Index ETF, a broadly diversified fund that includes altcoins like XRP, Solana, and Cardano alongside Bitcoin and Ethereum. But the celebratory mood didn’t last. A few hours later, the SEC pulled the approval, citing Rule 431(e) with no deadline and no explanation.
This is already the second time in a short span that an ETF with altcoin exposure has been abruptly halted. Earlier this month, the Grayscale Digital Large Cap ETF faced the exact same fate. Analysts say the SEC is trying to buy time to craft an overarching regulatory framework for crypto ETFs.
Access to altcoins remains limited
The Bitwise ETF would have been the first product of its kind on a U.S. national exchange. Right now, the fund is only trading over the counter under the ticker BITW. A NYSE Arca listing would give institutional and retail investors easy access to a diversified crypto portfolio with regulated exposure to top altcoins.
The timing of the SEC decision is spicy: Bitcoin’s dominance recently slipped from 66% to 60.5%, while the Altcoin Season Index has risen to 55, with many analysts viewing this as the kickoff for a looming altseason. Meanwhile, institutional appetite for altcoins is steadily growing.
Altcoin ETFs in the pipeline
According to Bloomberg analyst James Seyffart, the first spot ETFs for Solana, XRP, Cardano, and Polkadot are expected later in 2025, with an estimated 95% chance of approval. The Bitwise fund’s sudden halt raises questions: why now, and on what legal basis?
"Bizarre sequence of events"; sector faces strong criticism
Both Seyffart and ETF specialist Nate Geraci View post on X called the decision “bizarre” and are demanding clarity from the SEC. Until that clarity comes, the Bitwise 10 Crypto Index ETF mainly stands as a symbol of the regulatory vacuum around altcoins—initially approved, then halted, with no one knowing what happens next.
