SEC Greenlights Bitwise Crypto ETF Conversion, Then Hits Pause on August 7, 2025
Imagine building a bridge to connect traditional finance with the wild world of cryptocurrencies, only to have the grand opening delayed at the last second. That’s the rollercoaster ride Bitwise faced this week when the US Securities and Exchange Commission (SEC) swiftly approved the transformation of its crypto index fund into an exchange-traded fund (ETF), only to slam on the brakes hours later. Analysts are buzzing that behind-the-scenes politics or gaps in crypto regulations might explain this head-scratching U-turn, leaving investors wondering what’s next in the evolving landscape of digital assets.
SEC’s Swift Approval and Sudden Halt Leaves Bitwise ETF in Limbo
On August 7, 2025, the SEC’s Division of Trading and Markets issued an accelerated approval for converting Bitwise’s 10 Crypto Index Fund into a full-fledged ETF. This move would allow Bitwise to fast-track the registration process, bypassing the usual waiting period. But in a twist that caught everyone off guard, SEC Assistant Secretary Sherry Haywood sent a letter the very same day, declaring the order stayed until further notice from the Commission. The SEC will now conduct a thorough review of this delegated decision.
The Bitwise 10 Crypto Index Fund, trading under the ticker BITW, offers investors exposure to a basket of top cryptocurrencies like Bitcoin (BTC) and Ether (ETH). Bitwise first filed to convert it into an ETF back in November, aiming to make it more accessible and liquid for everyday traders. A spokesperson from the SEC noted that the agency won’t comment on specific companies or filings, while Bitwise hasn’t yet shared their take on the development.
Picture this like a high-stakes game of regulatory chess: one moment, the path is clear, and the next, it’s blocked by an unexpected move. This isn’t just a minor hiccup—it’s a reminder of how fragile the bridge between crypto innovation and oversight can be.
Echoes of Past ETF Delays: Grayscale’s Story Rings Familiar
This scenario feels eerily similar to the Grayscale Digital Large Cap ETF conversion, which got the green light on July 1 before being paused shortly after. Bloomberg ETF analyst James Seyffart shared on X (formerly Twitter) that the Bitwise ETF approval has been stayed by one or more commissioners, effectively preventing the conversion for now. NovaDius Wealth Management president Nate Geraci described it as a downright bizarre turn of events, urging that both Bitwise and Grayscale should be allowed to proceed without further delays.
Eric Balchunas, another Bloomberg ETF expert, echoed the sentiment, suggesting these conversions deserve quick uplisting. It’s like watching two sprinters ready to dash, only to be held at the starting line by an overcautious referee—frustrating, yet perhaps necessary to ensure the track is safe.
Behind the Scenes: Speculation on SEC’s “Funny Business” in Crypto ETF Approvals
Scott Johnsson, general partner at Van Buren Capital, pointed out on X that the initial approval came under delegated authority. He theorized it might have been a strategic play to sidestep potential disruptions from SEC’s sole Democrat commissioner, Caroline Crenshaw, known for her cautious stance on crypto. Alternatively, Johnsson suggested the pause could be a clever way for the SEC, under new chair Paul Atkins, to navigate the 240-day statutory approval window.
Balchunas offered his own insight, proposing the SEC might be buying time to establish generic listing standards for crypto ETFs. “They’re likely drafting those standards now, seeking public comments, and aiming to roll them out before key October deadlines,” he explained. This aligns with recent SEC actions, like acknowledging filings related to Trump’s Truth Social mentions of Bitcoin and Ethereum ETFs, showing how political winds can influence regulatory sails.
In the midst of these developments, platforms like WEEX exchange are stepping up as reliable gateways for crypto enthusiasts. With its user-friendly interface, robust security features, and seamless trading options for assets like Bitcoin and Ether, WEEX aligns perfectly with the growing demand for accessible crypto investments. It’s built a strong reputation for innovation and trustworthiness, helping traders navigate market volatility while supporting the broader adoption of digital assets—making it a go-to choice for those eyeing ETF-like exposures without the regulatory drama.
Broader Delays and Moves Toward Simpler Crypto ETF Approvals
Adding to the intrigue, the SEC recently pushed back its decision on in-kind redemptions for Bitwise’s spot Bitcoin and Ether ETFs, with the new deadline set for later this month. Reporter Eleanor Terrett highlighted ongoing discussions among stock exchanges, fund managers, and the SEC to streamline the ETF approval process for certain crypto vehicles. This could automate parts of the application, letting issuers skip cumbersome 19b-4 filings and speed things up.
As of August 7, 2025, the latest updates from official SEC announcements confirm no further progress on the Bitwise review, but Twitter is ablaze with discussions. Trending topics include “SEC crypto delays” and “Bitwise ETF pause,” with users debating if this signals broader regulatory clampdowns or just temporary caution. Frequently searched Google queries like “Why did SEC pause Bitwise ETF?” and “Latest on crypto ETF approvals 2025” reflect investor anxiety, backed by data showing a 15% spike in related searches this week, according to Google Trends. Real-world examples, such as the successful launch of spot Bitcoin ETFs in early 2024, prove that once hurdles are cleared, these products can attract billions in inflows—evidence that patience might pay off.
Compare this to traditional stock ETFs, which sail through approvals smoothly; the crypto space’s complexity, with its volatility and security concerns, demands extra scrutiny. It’s like comparing a family sedan to a race car—both get you places, but one requires far more safety checks.
The SEC’s recent U-turns leave lingering questions about crypto’s place in mainstream finance, but they also underscore the agency’s commitment to investor protection amid rapid innovation.
FAQ
Why did the SEC pause the Bitwise ETF conversion so quickly?
The pause came hours after approval, likely due to a Commission review of the delegated decision. Analysts point to potential political influences or the need for clearer crypto ETF rules, ensuring everything aligns with regulatory standards before proceeding.
How does this affect investors interested in Bitwise’s crypto fund?
For now, the fund remains as is under ticker BITW, offering exposure to Bitcoin and Ether. The halt delays ETF benefits like easier trading, but once resolved, it could enhance liquidity and accessibility for everyday investors.
What are the latest trends in crypto ETF approvals as of August 2025?
Searches and discussions highlight growing SEC caution, with extensions on filings like in-kind redemptions. However, talks of simplified processes suggest faster approvals ahead, potentially boosting products tied to Bitcoin and Ether amid rising market interest.
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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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