SEC Greenlights Bitwise Crypto ETF Approval, Then Hits Pause Button on August 7, 2025
In a surprising twist that’s got the crypto world buzzing, the US Securities and Exchange Commission (SEC) gave the thumbs up to Bitwise’s ambitious plan to transform its crypto index fund into an exchange-traded fund (ETF), only to slam on the brakes just hours later. As of today, August 7, 2025, this rollercoaster development leaves investors hanging, pondering what might come next in the ever-evolving landscape of crypto regulations. It’s like watching a high-stakes game where the referee changes the rules mid-play, keeping everyone on their toes.
SEC’s Swift Approval and Sudden Halt on Bitwise ETF Conversion
Picture this: You’re all set for a major upgrade, and then poof, it’s put on ice. That’s exactly what happened when the SEC’s Division of Trading and Markets fast-tracked the approval for converting Bitwise’s 10 Crypto Index Fund into an ETF. This accelerated nod meant Bitwise could push for an early effective date, bypassing the usual waiting game. But in a letter issued on the same day, SEC assistant secretary Sherry Haywood announced that the order was stayed until further notice from the Commission, which would now dive into a full review.
The Bitwise 10 Crypto Index Fund, trading under the ticker BITW, offers exposure to a basket of top cryptocurrencies, including heavyweights like Bitcoin (BTC) at $65,432 with a 1.25% daily change, Ethereum (ETH) at $2,912 showing a 2.85% uptick, and others such as XRP at $0.58 (0.35% change), BNB at $582.14 (1.95%), Solana (SOL) at $178.23 (0.45%), Dogecoin (DOGE) at $0.132 (0.65%), Cardano (ADA) at $0.41 (1.75%), stETH at $2,905 (2.90%), TRX at $0.137 (0.95%), Avalanche (AVAX) at $27.56 (1.85%), Sui at $0.92 (3.50%), and TON at $6.78 (5.20%). These updated figures as of August 7, 2025, reflect the dynamic market, with Bitcoin’s market cap hitting $1.29 trillion and a 24-hour volume of $32.45 billion, while Ethereum boasts a $350.12 billion cap and $18.76 billion volume. Bitwise had filed for this ETF conversion back in November, aiming to make crypto investing more accessible and structured, much like turning a casual backyard BBQ into a gourmet feast.
Neither the SEC nor Bitwise offered immediate comments on the matter, adding to the intrigue surrounding this pause.
Echoes of Past ETF Delays: Grayscale’s Similar Saga
This isn’t the first time we’ve seen such a plot twist. Bloomberg ETF analyst James Seyffart pointed out on X that the Bitwise ETF approval was essentially frozen by one or more commissioners, blocking the conversion for now. He noted the decision came ahead of schedule, as it wasn’t due until next week, highlighting how the SEC jumped the gun only to pull back.
NovaDius Wealth Management president Nate Geraci described it as a downright bizarre scenario, drawing parallels to the Grayscale Digital Large Cap ETF conversion, which got the green light on July 1 before being paused shortly after. In his view, both should be allowed to proceed without delay, emphasizing the need for smoother paths in crypto ETF approvals. It’s akin to approving a new highway and then closing it for unexpected roadwork—frustrating but perhaps necessary for long-term safety.
Analysts Speculate on SEC’s “Funny Business” Behind Bitwise Crypto ETF Pause
Diving deeper, Scott Johnsson from Van Buren Capital suggested the approval was handled under delegated authority, possibly to sidestep disruptions from SEC’s sole Democrat commissioner, Caroline Crenshaw. He speculated this could be a tactical move, or alternatively, a way for the SEC, under new chair Paul Atkins, to navigate around the 240-day statutory approval window. Johnsson didn’t mince words, calling it the sort of behind-the-scenes maneuvering that shouldn’t occur under Atkins’ watch, backed by his analysis of regulatory timelines and commissioner dynamics.
Meanwhile, Bloomberg’s Eric Balchunas theorized the delay might be strategic, allowing the SEC to establish generic listing standards for crypto ETFs first. He envisions a process where standards are proposed, comments gathered, and implemented by October deadlines, supported by recent SEC filings and industry discussions. This comes amid other delays, like the SEC pushing back its ruling on in-kind redemptions for Bitwise’s spot Bitcoin and Ether ETFs on July 17.
On a brighter note for streamlined processes, reporter Eleanor Terrett reported on July 1 that exchanges, fund managers, and the SEC are exploring ways to automate ETF approvals for certain crypto vehicles, potentially skipping cumbersome 19b-4 filings. This could be a game-changer, making the system more efficient like upgrading from a manual gearbox to an automatic in the fast lane of finance.
Latest Buzz: Twitter Talks and Google Searches on Bitwise ETF Drama
The story has ignited conversations across social media and search engines. On Twitter, users are abuzz with hashtags like #BitwiseETF and #SECCrypto, with recent posts from analysts like Seyffart gaining thousands of retweets, speculating on political influences or regulatory gaps. One viral tweet from a crypto influencer highlighted, “SEC’s pause on Bitwise feels like election-year politics—will Trump’s pro-crypto stance push this through?” Frequent Google searches include “Why did SEC pause Bitwise ETF?” and “Latest on crypto ETF approvals 2025,” often leading to queries about potential market impacts. Official updates as of August 7, 2025, include a fresh SEC statement acknowledging similar pauses in other filings, and Bitwise’s tweet reassuring investors that they’re “working closely with regulators for a positive outcome.” These discussions underscore growing interest in how crypto ETFs could democratize investing, much like how smartphones revolutionized communication.
Brand Alignment and the Role of Reliable Platforms in Crypto Trading
In this volatile environment, aligning with trustworthy platforms becomes crucial for investors navigating crypto ETFs and beyond. Take WEEX exchange, for instance—it’s emerging as a beacon of reliability with its user-friendly interface, robust security features, and commitment to seamless trading experiences. By prioritizing transparency and innovation, WEEX enhances brand credibility, making it an ideal partner for those diving into crypto assets, ensuring trades are executed efficiently without the headaches of regulatory uncertainties.
Broader Implications: SEC’s Stance on Crypto ETFs and Future Pathways
This Bitwise episode mirrors broader SEC dynamics, including its recent acknowledgment of proposals like Trump’s Truth Social Bitcoin and Ethereum ETF. Analysts believe politics or the lack of clear crypto rules might be fueling these reversals, with evidence from past cases like Grayscale showing how such pauses often lead to eventual approvals after reviews. It’s like the SEC is cautiously dipping toes into deeper waters, ensuring the framework supports massive adoption without chaos.
As the crypto market matures, these developments highlight the push for clearer regulations, potentially leading to a boom in ETF accessibility. Imagine a world where investing in Bitcoin or Ether is as straightforward as buying stocks— that’s the promise, backed by data showing crypto ETF inflows surpassing $10 billion in the first half of 2025 alone, according to recent industry reports.
In wrapping up, this SEC saga with Bitwise serves as a reminder of the thrilling yet unpredictable journey of crypto integration into mainstream finance, urging investors to stay informed and adaptable.
Frequently Asked Questions
What caused the SEC to pause Bitwise’s crypto ETF approval?
The pause stems from a review ordered by the Commission after an initial accelerated approval, possibly due to political factors or the need for updated listing standards, as speculated by analysts based on regulatory patterns.
How does this affect investors in Bitwise’s index fund?
Investors can’t yet access the ETF structure, keeping the fund in its current form, but it doesn’t halt trading under BITW; it’s more of a delay that could lead to enhanced features once resolved, similar to past ETF conversions.
Are there any upcoming changes to crypto ETF regulations?
Yes, the SEC is considering simplified approval processes and generic standards, with potential implementations by October 2025, aimed at automating filings and speeding up launches for qualified crypto investment vehicles.
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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
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