SEC’s uncertainty on crypto ETFs: What it means for the future of digital assets

Key Takeaways
21Shares takes a bold leap into DeFi by filing for a spot Ondo ETF, signaling growing institutional interest. Meanwhile, Bitwise’s halted ETF launch reflects the SEC’s ongoing regulatory unpredictability.
In a move that could further bring together DeFi and TradFi, ETF provider 21Shares has filed an application to launch a spot exchange-traded fund (ETF) tied to Ondo [ONDO], the native token of Ondo Finance.
21 Shares files for Ondo crypto ETF
The newly proposed “21Shares Ondo Trust” seeks to give investors direct access to ONDO by holding the token itself and mirroring its value through the CME CF Ondo Finance-Dollar Reference Rate.
According to the preliminary filing submitted on the 22nd of July, Coinbase will serve as the custodian for the fund’s underlying assets.
As expected, the announcement appears to have given ONDO a short-term boost, with the token rising 6.2% in the past 24 hours to $1.09, according to CoinMarketCap.
While the crypto industry welcomed 21Shares’ ETF filing with optimism, another major development from the SEC drew a more mixed response.
Bitwise 10 Crypto Index Fund hangs in limbo
On the same day, the U.S. SEC approved the fast-tracked conversion of Bitwise’s flagship crypto index fund into a spot exchange-traded fund (ETF).
However, shortly after granting the green light, the SEC abruptly placed the approval on hold, delaying the fund’s official launch and injecting fresh regulatory ambiguity into an already complex approval landscape.
For those unaware, the Bitwise 10 Crypto Index Fund (BITW), which is seeking to transition into a spot ETF, tracks a diversified basket of top crypto assets.
According to the SEC filing, the fund’s current allocation includes 78.72% Bitcoin [BTC], 11.10% Ethereum [ETH], and 4.97% XRP.
Other assets featured in the portfolio are Solana [SOL], Cardano [ADA], Sui [SUI], Chainlink [LINK], Avalanche [AVAX], Litecoin [LTC], and Polkadot [DOT], offering investors broad exposure to digital assets.
Coinbase Custody will be responsible for safeguarding the fund’s crypto holdings, while financial services giant BNY Mellon has been appointed to manage its cash components and serve as the administrator.
Despite overseeing $1.68 billion in assets and rebalancing monthly, Bitwise now faces regulatory headwinds just as institutional appetite for diversified crypto ETFs appears to be gaining momentum.
Crypto ETF uncertainty: What’s ahead?
Needless to say, the SEC’s sudden reversal has drawn criticism from analysts, who argue that the move undermines transparency in how the agency evaluates crypto-based financial products.
For now, while the approval remains on record, its stalled implementation reflects ongoing uncertainty surrounding the regulatory path forward for multi-asset crypto ETFs in the United States.
However, despite mounting delays and mixed signals from the SEC, optimism around crypto ETFs hasn’t waned as per Polymarket data.
Although Grayscale received approval under the 1933 Act, its ETF has yet to begin trading, and Bitwise’s approval status remains unresolved.
Bloomberg’s 95% approval odds reflect the broader market’s expectations, even as new filings like 21Shares’ Ondo ETF seem ambitious amid regulatory bottlenecks.