Crypto Turmoil: SEC’s ETF Drama with Bitcoin, XRP, and Solana

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The SEC, in its infinite wisdom, has decided to bless the crypto world with yet another ETF. This time, it’s the Bitwise 10 Crypto Index ETF, a creation that promises to bring more transparency, safeguards, and, of course, a dash of chaos to the ever-volatile crypto markets. Bitcoin, Ethereum, XRP, and Solana lead the charge, ensuring that institutional investors can lose sleep over digital assets just like the rest of us.

The SEC’s Grand Gesture: Approving the Bitwise 10 ETF

In a move that surprised exactly no one, the U.S. Securities and Exchange Commission (SEC) has finally approved the Bitwise 10 Crypto Index ETF. This decision comes after months of bureaucratic waffling, including a sudden halt to a delegated approval issued back in July. The SEC, ever the master of suspense, announced:

“IT IS THEREFORE ORDERED … that the earlier action taken by delegated authority … is set aside and … the proposed rule change … hereby is approved.”

The ETF will maintain at least 85% exposure to commodities underlying previously approved exchange-traded products (ETPs). Pricing will be supported by CF Benchmarks’ reference values, while surveillance, intraday valuation dissemination, and mandatory trading halts will serve as structural safeguards. Because, you know, the crypto market is as stable as a house of cards in a windstorm.

As of Nov. 18, the fund’s reported weights showed concentrated large-cap exposure: bitcoin at 74.4%, Ethereum at 15.2%, XRP at 5.3%, and Solana at 3.1%. The fund also holds Cardano, Chainlink, Litecoin, Avalanche, SUI, and Polkadot. Quite the ensemble cast, if you ask me.

Bitwise 10 Crypto Index ETF holdings as of Nov. 18. Source: Bitwise

The SEC’s decision followed the Commission’s intervention on July 22, 2025, pausing the Division of Trading and Markets’ initial approval and initiating a de novo review. Because why make things simple when you can complicate them?

The Saga of XRP and Solana: Critics vs. the SEC

Public comments drew contrasting views. Some critics questioned the inclusion of XRP and Solana, referencing concerns about decentralization, regulatory posture, and futures-market depth. The SEC, however, had a ready response:

“Although this commenter states that neither XRP nor Solana has an established futures market, the Chicago Mercantile Exchange currently lists and trades both XRP and Solana futures contracts.”

Other objections focused on volatility and cybersecurity events. The Commission reiterated that its duty is to determine whether exchange rules are designed to detect and deter manipulation, not to ensure market immunity. Because, let’s face it, expecting the crypto market to be immune to manipulation is like expecting a cat to ignore a laser pointer.

FAQ 🧭

  • Why is the SEC’s approval of the Bitwise 10 Crypto Index ETF significant for investors?
    The approval signals growing regulatory acceptance of diversified crypto exposure and opens the door for broader institutional participation under a fully reviewed, de novo process.
  • How does the ETF’s high-cap concentration impact its investment profile?
    With bitcoin and Ethereum comprising nearly 90% of the fund, investors gain targeted exposure to the most liquid, institutionally adopted assets while still capturing smaller allocations to emerging networks.
  • What safeguards did the SEC highlight to address market manipulation concerns?
    The ETF relies on CME-traded futures, CF Benchmarks pricing, surveillance-sharing protocols, intraday valuation dissemination, and automatic trading halts to align with prior ETP standards.
  • How does the inclusion of assets like XRP and Solana fit within regulatory expectations?
    The SEC noted that active CME futures trading for both assets meets its criteria for market depth and oversight, supporting their eligibility within the ETF’s diversified component framework.

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2025-11-20 05:59