The SEC paused the approval of Bitwise's 10 Crypto Index ETF just hours after its staff gave the green light, marking the second such intervention this month. This move comes on the heels of a similar halt on Grayscale's Digital Large Cap Fund (GDLC) conversion to a spot ETF, raising concerns about internal resistance within the SEC regarding broader crypto products. The Bitwise ETF was intended to provide diversified exposure to major crypto assets but now faces indefinite delay without a required timeline for the Commission's review. Public feedback prior to the approval cited market manipulation and the reliability of crypto pricing data as major concerns. The ongoing uncertainty leaves ETF issuers in a challenging limbo. Prominent figures in the industry have criticized the SEC's actions, calling the situation bizarre, and stressing the need for these approvals to ensure investor confidence and market stability.

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