Bitwise Files for 10 Crypto Index Fund ETF with SEC Approval

Explore Bitwise’s 10 Crypto Index Fund ETF and Its Crypto Allocations

Bitwise Submits Application for 10 Crypto Index Fund ETF to the SEC

Digital asset manager Bitwise Asset Management has taken another significant step in the cryptocurrency investment space. On November 27, the firm submitted an application to the U.S. Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) based on its 10 Crypto Index Fund (BITW). The ETF aims to provide investors indirect exposure to a diverse portfolio of leading cryptocurrencies.

Background on the Bitwise 10 Crypto Index Fund

Launched in November 2017, the Bitwise 10 Crypto Index Fund is one of the firm's flagship products. The fund is heavily weighted towards Bitcoin and Ether, which together account for over 91% of the fund's composition. As of now, the allocations stand at 75.14% Bitcoin and 16.42% Ether, with the remaining 8.44% diversified across cryptocurrencies like Solana (SOL), Ripple’s XRP, Avalanche (AVAX), Chainlink (LINK), Cardano (ADA), Bitcoin Cash (BCH), Uniswap (UNI), and Polkadot (DOT).

The fund currently manages $1.4 billion in assets under management (AUM), based on recent market data.

Details of the Proposed ETF

If approved, the Bitwise 10 Crypto Index Fund ETF will be listed on the New York Stock Exchange (NYSE) Arca. The filing specifies that the ETF will offer investors indirect exposure to the underlying digital assets. Unlike direct cryptocurrency investments, this product will be regulated and professionally managed, making it an attractive option for institutional and retail investors seeking exposure to the crypto market without handling digital assets themselves.

To ensure security, the ETF will rely on Coinbase Custody for safekeeping the crypto assets, while Bank of New York Mellon will handle the fund’s cash holdings and act as the trust's administrator and transfer agent.

Recent Developments by Bitwise

Bitwise has been actively expanding its offerings in recent months. The firm recently rebranded its European XRP ETF, launched in 2022, to Bitwise Physical XRP ETP. In addition, Bitwise has been pursuing spot cryptocurrency ETFs. On November 26, NYSE Arca filed to list a Bitwise ETF providing direct spot Bitcoin and Ether exposure. Similarly, on November 20, the firm registered a trust in Delaware for a potential spot Solana ETF.

The Broader ETF Landscape

The SEC's regulatory stance on cryptocurrency ETFs has evolved over time. In January 2024, the agency approved the first spot Bitcoin ETFs, and in May, it granted approval for spot Ether ETFs. This marks a significant shift toward accommodating digital assets in regulated financial markets.

A Favorable Regulatory Environment?

The evolving U.S. political landscape may also play a role in shaping crypto regulations. The recent U.S. elections saw a wave of pro-crypto candidates win seats in Congress. Industry experts believe this could lead to a more supportive regulatory environment for crypto innovations, potentially increasing the likelihood of ETF approvals.

Conclusion

The Bitwise 10 Crypto Index Fund ETF could become a pivotal product for crypto investors if approved. By offering a diversified and regulated avenue for exposure to the top cryptocurrencies, the ETF is set to attract significant interest from traditional and crypto-savvy investors alike. As the SEC reviews Bitwise's application, the crypto industry eagerly awaits another potential milestone in bridging traditional finance with digital assets.