The US Securities and Exchange Commission (SEC) has issued a stay order on Bitwise’s bid to convert its over-the-counter (OTC) crypto index fund into a spot exchange-traded fund (ETF).

The decision came just hours after the SEC’s Division of Trading and Markets granted accelerated approval for the application on July 22.

The stay, issued by the SEC’s Office of the Secretary, temporarily suspends the fund’s transition to ETF status pending further review. If allowed to proceed, the Bitwise 10 Crypto Index Fund (BITW) would trade on NYSE Arca under the amended Rule 8.500-E, which governs the listing of Trust Units.

Bitwise first filed its ETF conversion request in November 2024. The fund, launched in 2017, holds approximately $1.68 billion in assets under management.

As of July 22, Bitcoin accounts for 73.8% of the portfolio, followed by Ethereum at 13.8% and XRP at 6.5%. Other constituents include Solana, Cardano, Sui, Chainlink, Avalanche, Litecoin, and Polkadot in smaller proportions.

SEC’s pattern of post-approval delays

The SEC’s latest move echoes a similar pattern observed earlier this month.

On that occasion, the agency approved Grayscale’s request to convert its Digital Large Cap Fund (GDLC) into an ETF, only to issue a stay the following day. The GDLC also holds significant digital assets like Bitcoin and Ethereum.

Grayscale responded by challenging the stay, arguing that the approval was automatic due to the expiration of the SEC’s statutory review period. The firm claimed the Commission lacked the authority to reverse a decision effectively passed into law.

Bloomberg ETF analyst James Seyffart suggested the SEC might be intentionally delaying these approvals to finalize a broader regulatory framework.

According to him:

“[This] might be the SEC’s way of stalling these things from becoming ETFs before they come up with a digital assets ETF framework. AKA some sort of generic listing standard for what digital assets are allowed in an ETF wrapper and what criteria they’ll use.”

According to reports, the framework would allow issuers to no longer need to file individual rule-change requests if their tokens meet certain criteria. Instead, sponsors would register with Form S-1, undergo a 75-day review, and list the product upon clearance.

Meanwhile, finance attorney Scott Johnsson offered a different interpretation of the repeated delays.

According to him, the financial regulator could be deliberately using the delegated authority to delay final approvals, potentially to avoid penalizing applicants like Grayscale or to circumvent the 240-day statutory review period.

Nevertheless, the lawyer noted that these issues should not occur under SEC Paul Atkins’s pro-crypto regime.

Considering this, Johnsson believes the uncertainty could be resolved before the October deadline, when several high-profile ETF applications are expected to face final decisions.

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Analytics platform Swissblock is outlining the path forward for Bitcoin (BTC) amid stiff resistance at a level just below the all-time high.

According to Swissblock, Bitcoin is “stalling below $110,000” and the upward trend is now under pressure as a broad trading range appears to form between the resistance level and a price of $100,000.

“Consolidation may last, but one thing’s clear: No breakout without strong fundamentals.”

Bitcoin is trading at $104,447 at time of writing, around 7% below the all-time high of just under $112,000 reached last month.

Earlier in the week, Swissblock had warned that a failure by Bitcoin to break out amid a lack of fresh investor flows could lead to a double-top.

A double-top is an extremely bearish technical reversal pattern formed when the price of an asset forms two consecutive peaks, an indication that there’s a strong resistance level that the price is unable to pierce through.

According to Bitcoin Vector, a joint report by Swissblock and on-chain analyst Willy Woo, BTC liquidity has been trending lower for the past couple of days, an indication of falling volume levels, a declining number of transactions and reduced activity.

But Bitcoin Vector says a further correction is unlikely.

“Here’s the interesting part: network growth remains stable, participants are not leaving the market.

This aligns with a key point from Bitcoin Vector: profit-taking remains low, meaning selling pressure is limited.”

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Florida has become the latest US state to abandon efforts to establish a strategic Bitcoin reserve, dealing another setback to the broader push for state-level crypto adoption.

Two proposed bills — House Bill 487 and Senate Bill 550 — were officially withdrawn from the legislative process on May 3, according to the Florida Senate.

The legislative session had adjourned a day earlier, on May 2, without taking action on the crypto-focused proposals.

Florida Extends Session, But Crypto Bills Left Behind

Though lawmakers agreed to extend the session until June 6 for budget negotiations, the crypto bills will not be reconsidered.

HB 487, introduced in February, would have authorized Florida’s chief financial officer and the State Board of Administration to allocate up to 10% of select state funds into Bitcoin.

SB 550, filed in parallel, aimed to facilitate similar investments of public funds into the digital asset.

Their removal places Florida alongside a growing list of states — including Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma — that have recently failed to pass legislation allowing Bitcoin-based investment strategies.

The data comes from Bitcoin Laws, a site tracking crypto-related state policy efforts.

During the recent Florida legislative session, lawmakers passed roughly 230 bills addressing a wide range of issues, from banning smartphones in schools to protecting state parks.

However, cryptocurrency initiatives were noticeably absent from the final tally.

Florida’s move follows closely behind developments in Arizona, where a promising crypto initiative was also halted.

Arizona’s House Bill 1025, which had advanced further than any other similar bill nationwide, was vetoed on May 3 by Governor Katie Hobbs.

She called digital assets “untested investments,” effectively stopping the proposed Digital Assets Strategic Reserve Act in its tracks.

Crypto Advocates Slam Politicians Over Bitcoin Veto

The veto sparked backlash from crypto advocates, including investor Anthony Pompliano, who criticized political leaders for dismissing Bitcoin’s potential.

Dennis Porter, CEO of the Satoshi Action Fund, pointed out that Arizona still has two remaining bills under consideration — HB 2749 and SB 1373 — that could revive the state’s efforts to become the first in the U.S. to create a Bitcoin reserve.

HB 2749 is particularly notable for being budget-neutral, as it proposes using profits from the state’s unclaimed property fund.

SB 1373, meanwhile, would allow the treasurer to invest up to 10% of state funds in digital assets, though it has not yet faced a final vote.

As reported, the US Senate is also facing a sudden breakdown in negotiations over a landmark cryptocurrency bill, placing one of former President Donald Trump’s top financial policy priorities in jeopardy.

The legislation, aimed at establishing the country’s first federal regulatory framework for stablecoins—digital assets pegged to the U.S. dollar—has hit a bipartisan snag, following pushback from key Senate Democrats.

On Saturday, nine Democratic senators, including some who had previously backed the bill in committee, issued a joint statement rejecting a revised version of the legislation introduced by Republicans last week.

The post Florida Latest to Drop Crypto Bills, Stalling State-Level Bitcoin Reserve Push appeared first on Cryptonews.

At 08:30 ET today, the Bureau of Economic Analysis is set to release its advance estimate for US Q1 GDP, with consensus expectations at a 0.3% seasonally adjusted annual rate.

If confirmed, this would mark the weakest quarterly print since early 2022 and contrast starkly with the inflow of over $3 billion into spot Bitcoin ETFs last week, reflecting what some market participants interpret as a pivot in capital preference toward digital assets amid macroeconomic stagnation.

[Editor’s Note: Q1 GDP will not include tariff impact as the cut-off date came before ‘Liberation Day.’]

GDP forecasts show a stark divide. The Atlanta Fed’s Nowcast has called a contraction of 2.7%, while the Philadelphia Fed’s model projects growth of 2.5%, last updated on Feb. 14.

Regardless of the final figure, the drag from the record goods-trade deficit is a common feature across estimates, with some models attributing up to 1.9 percentage points of negative contribution to it.

This trade shortfall appears to be a delayed consequence of tariff front-loading, spurring preemptive imports during the prior quarter. Inventories are expected to be flat, while consumer sentiment continues to deteriorate, hitting a five-year low. Business capital expenditure has also been curtailed.

Inflationary persistence further complicates the picture. March’s Consumer Price Index rose 2.4% year-over-year, and the Core PCE index, the Federal Reserve’s preferred inflation gauge, stood at 2.8% in February.

Interest rate futures now price in over 90% probability of a rate cut by December. Concurrently, Treasury yields have declined and the dollar has weakened, reinforcing stagflation comparisons with the 1970s as economic growth stalls and inflation remains above target.

Bitcoin macro hedge for 2025?

Bitcoin’s market setup diverges notably from the traditional macro picture. Realized capitalization for the top digital asset continues to make new all-time highs, currently at $883 billion and signaling continued inflows despite the pullback from January’s price peak.

Data show that approximately 20,000 BTC exited exchanges in the past week, the highest weekly net outflow in two years, primarily driven by whale accumulation of 19,255 BTC. Meanwhile, spot Bitcoin ETFs captured $3.4 billion in inflows, the third-largest weekly intake to date.

BlackRock’s IBIT alone recorded $643 million on April 23, its second-largest single-day inflow.

Volatility metrics suggest a broader evolution in market structure. Realized volatility has compressed by roughly 50% from its 2022 peaks, and the volatility spread between Bitcoin and the Nasdaq now sits near cycle lows.

This compression has lent credence to characterizations of Bitcoin as a maturing asset class, a view reinforced by VanEck’s observation that its volatility and co-movement profile increasingly resemble that of gold rather than equities.

The juxtaposition between a near-stalling US economy and a record-high cumulative invested cost in Bitcoin reflects diverging narratives around capital preservation.

The trade deficit drag highlights the limitations of a tariff-distorted goods economy, while Bitcoin’s borderless framework offers a contrasting vehicle for global allocation.

The backdrop of tepid growth and elevated inflation has reopened discourse around digital assets as potential stagflation hedges, particularly as ETF demand endures despite recessionary signals.

With major funds from the likes of BlackRock and Fidelity continuing to absorb supply, flows into digital assets show resilience that is disconnected from conventional macro indicators.

Market participants now look toward the May 1 Core PCE update and next week’s FOMC decision for further clarity on rate trajectory and inflation conditions.

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Welcome to The Logoff. Today I’m focusing on the Trump administration’s string of court setbacks, which, for now, seem to be slowing down what once looked like a MAGA juggernaut.