Bitwise, a leading asset management firm, has taken a significant step toward launching a multi-crypto ETF. The proposed product aims to transform its flagship crypto index fund into an exchange-traded product (ETP). This move comes amidst speculation that the regulatory landscape for crypto ETFs could improve, especially following reports of SEC Chair Gary Gensler’s potential resignation.
What’s Inside Bitwise’s Multi-Crypto ETF?
Bitwise has applied to list its 10 Crypto Index Fund (BITW) as an ETP on NYSE Arca. The company touts BITW as the world’s first and largest crypto index fund, managing $1.3 billion in assets. The proposed ETF will primarily feature Bitcoin but will also include nine other top-performing tokens:
Bitcoin (BTC): 75.1%
Ethereum (ETH): 16.5%
Solana (SOL): 4.3%
Ripple (XRP): 1.6%
Cardano (ADA): 0.7%
Avalanche (AVAX): 0.6%
Bitcoin Cash (BCH): 0.4%
Chainlink (LINK): 0.4%
Uniswap (UNI): 0.3%
Polkadot (DOT): 0.3%
This diversified allocation aims to offer investors a transparent and efficient way to gain exposure to the broader crypto market.
A Regulatory Shift on the Horizon?
The application marks a key milestone in Bitwise’s efforts to convert its public trust into an ETP structure. Industry experts believe that approval of this multi-crypto ETF could pave the way for broader adoption of crypto index funds in traditional finance markets.
Bloomberg’s ETF strategist, Eric Balchunas, has highlighted the timing of this move, coinciding with potential changes in regulatory sentiment. Balchunas noted that Gensler’s resignation could usher in a new SEC chair, potentially more favorable toward crypto ETFs. He commented, “The evolving regulatory environment makes this an opportune time to pursue such initiatives.”
This announcement closely follows Grayscale’s recent efforts to establish a similar product, indicating growing demand for innovative crypto investment vehicles.
Index Funds Gaining Traction in Crypto Markets
As the cryptocurrency market matures, index funds are becoming an increasingly popular way for investors to participate in the sector. For instance, Coinbase recently launched the COIN50 index, tracking the performance of the top 50 digital assets. Developed in collaboration with VanEck’s Market Vector, COIN50 provides a fresh perspective on market trends, catering to both retail and institutional investors.
Bitwise’s proposed transformation of its crypto index fund into an ETP aligns with this trend. However, the SEC’s approval process, especially during a potential leadership transition, may take time. Regardless, Bitwise continues to expand its offerings, having already launched spot Bitcoin ETFs and Ethereum ETFs to meet growing investor demand.
The Road Ahead for Multi-Crypto ETFs
The approval of Bitwise’s multi-crypto ETF could signal a turning point for the industry, making crypto investments more accessible and regulated. As the regulatory climate evolves, products like BITW are poised to shape the future of crypto-financial markets.
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