Bitwise was planning to apply to convert its crypto index fund into a crypto ETP (Exchange Traded Product) and was waiting for a more favorable regulatory environment to emerge in this process. Bloomberg’s Eric Balchunas suggests that the regulatory stance on crypto ETFs will become more favorable after the resignation of SEC Chairman Gary Gensler. Amid these expectations, Bitwise has filed a multi-crypto ETF application, which will include 9 altcoins along with Bitcoin.

Bitwise’s Multi-Crypto ETF Move: Bitcoin and 9 Altcoins Together!

Major asset manager Bitwise has filed to list NYSE Arca’s 10 Crypto Index Fund (BITW) as an exchange-traded product (ETP). Bitwise said the fund is the world’s first and largest crypto index fund, and currently has $1.3 billion in assets under management. The fund will include a total of 9 altcoins, with Bitcoin being the dominant asset:

  • 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 application is considered a significant step in Bitwise’s efforts to convert the public trust into an ETP structure. This multi-crypto ETF aims to offer investors significant advantages in terms of transparency and efficiency. According to experts, if this ETF is approved, BITW’s transformation into an ETP structure could pave the way for wider acceptance of crypto index products in the financial markets. At the same time, this development is seen as a reflection of SEC Chairman Gary Gensler’s stance on crypto regulations and hints at his resignation.

Bloomberg ETF strategist Eric Balchunas called the development a positive step, noting that it comes shortly after Grayscale’s efforts to launch a similar ETF. Balchunas noted that Gensler’s departure and the possibility of an SEC Chair from the Trump administration could shift regulatory sentiment toward crypto ETFs and increase approvals. However, “it’s too early to tell the odds,” Balchunas said, noting that the evolving regulatory environment could be a key factor in greenlighting such initiatives.

Maturation of Cryptocurrencies and Increased Investment in Index Funds

The maturation of cryptocurrencies and their tighter integration with the global financial sector are encouraging market players to take bolder steps in launching crypto index funds. Last week, Coinbase announced the COIN50 crypto index fund, which consists of the top 50 digital assets. Developed in collaboration with Coinbase and VanEck, the COIN50 crypto index offers a new approach to tracking the performance of the crypto economy. Coinbase stated that it designed the index to provide investors with clearer information about market trends.

Bitwise’s plan to convert its crypto index fund to an ETP structure may take time due to SEC approval and Gensler’s resignation. However, Bitwise continues to expand its product portfolio; spot Bitcoin ETFs and spot Ethereum ETFs are currently available, and this new ETF filing could help further investor adoption of crypto index funds.