The US Securities and Exchange Commission (SEC) granted accelerated approval for Bitwise's crypto index fund to become an ETF, but hours later suspended the decision, leaving the fund in regulatory limbo.
The SEC's Division of Trading and Markets initially approved the conversion of the Bitwise 10 Crypto Index Fund on Tuesday, allowing Bitwise to expedite the process.
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However, later that day, SEC Deputy Secretary Sherry Haywood issued a suspension, halting the conversion pending further review by the Commission.
The Bitwise fund holds Bitcoin, Ether, and other cryptocurrencies. The company applied for the ETF conversion in November.