The SEC placed a stay on Bitwise 10 Crypto Index Fund’s conversion to an ETF, delaying its launch despite approval. This creates uncertainty around when the fund will hit U.S. markets, similar to actions taken against Grayscale’s Digital Large Cap Fund. The Bitwise fund holds $1.4 billion in assets across 10 crypto holdings.

The fund, tracking the Bitwise 10 Large Cap Crypto Index, has Bitcoin at 78.7% weighting and Ethereum at 11.1%. It also includes XRP, Solana, and Cardano. The SEC granted accelerated approval for the conversion to an ETF, but a separate letter triggered the stay under Rule 431.

The SEC requires the fund to maintain at least 85% of its holdings in commodities underlying exchange-traded products. The stay prevents trading until further notice, following a pattern seen with Grayscale’s Digital Large Cap Fund. The Office of the Secretary will inform the exchange of any agency action.

Grayscale’s Digital Large Cap Fund faced a similar delay despite approval, tracking the CoinDesk 5 Index with $774.8 million assets under management. The Bitwise fund has traded over-the-counter and operated as a trust since November 2017, with public quotation starting in December 2020.

Read more at Yahoo Finance: SEC Stays Bitwise Crypto ETF Launch Despite Approval