The U.S. Securities and Exchange Commission (SEC) initially approved the conversion of Bitwise Asset Management’s 10 Crypto Index Fund (BITW) into a spot exchange-traded fund (ETF) on Tuesday, but quickly issued a stay order, pausing the process for a full commission review.

The Bitwise 10 Crypto Index Fund currently offers exposure to a basket of major digital assets weighted by market cap. The fund holds roughly 90% of its assets in BTC and ETH, with XRP representing about 6.7% of assets and other altcoins like SOL, ADA and AVAX sharing the remainder.

The conversion would have made BITW the first multi-asset crypto index ETF in the U.S. if it had proceeded, easing institutional and retail access to diversified crypto exposure through traditional brokerage accounts.

This story is an excerpt from the Unchained Daily newsletter.

It marks the second reversal of a multi-asset crypto ETF approval in July, following the SEC’s sudden pause on Grayscale’s Digital Large Cap Fund (GDLC) conversion just weeks earlier.

“IMO, both of these should be allowed to convert/uplist asap. Bizarre situation,” said ETF analyst and NovaDius Wealth Management president Nate Geraci on X.