Bitwise Asset Management files for its 10 Crypto Index Fund ETF, offering diversified exposure to major cryptocurrencies, including Bitcoin and Ether.
Bitwise 10 Crypto Index Fund ETF Application Submitted to SEC
Digital asset manager Bitwise has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) based on its existing 10 Crypto Index Fund (BITW).
The proposed ETF, filed on Nov. 27, aims to provide investors with indirect exposure to a diversified portfolio of cryptocurrencies, with the New York Stock Exchange (NYSE) Arca filing to list the ETF on Nov. 15.
Portfolio Composition and Custodial Details
Fund Allocation (H3)
The Bitwise 10 Crypto Index Fund ETF allocates its assets primarily to Bitcoin and Ether but includes a range of other major cryptocurrencies:
Bitcoin (BTC): 75.14%
Ether (ETH): 16.42%
Additional holdings: Solana (SOL), Ripple (XRP), Avalanche (AVAX), Chainlink (LINK), Cardano (ADA), Bitcoin Cash (BCH), Uniswap (UNI), and Polkadot (DOT).
Custody and Management
Crypto Custody: Managed by Coinbase Custody.
Cash Holdings and Administration: Handled by Bank of New York Mellon, serving as the custodian, administrator, and transfer agent.
Fund Size and Objective
The fund holds $1.4 billion in assets under management (AUM), with a strict focus on the portfolio assets and cash.
Objective: Indirect exposure to cryptocurrencies without direct ownership by the Trust.
Regulatory and Market Context
SEC Review Timeline
The SEC has yet to set a deadline to approve or reject the application but has formally acknowledged its submission.
Bitwise’s Market Moves
Bitwise has been expanding its offerings:
Nov. 27: Rebranded its European XRP ETF as the Bitwise Physical XRP ETP.
Nov. 26: Filed for a direct spot Bitcoin and Ether ETF.
Nov. 20: Registered a statutory trust in Delaware for a spot Solana ETF.
Pro-Crypto Regulatory Landscape
The recent U.S. presidential election and pro-crypto Congressional wins have fostered optimism about a more favorable regulatory environment, potentially increasing the likelihood of ETF approvals.
Significance of the Bitwise 10 Crypto Index Fund ETF
The ETF offers investors exposure to a diversified basket of leading cryptocurrencies, appealing to those seeking to hedge against volatility while benefiting from broader crypto market trends. Bitwise’s expertise and partnerships with established institutions like Coinbase Custody and Bank of New York Mellon enhance investor confidence.
A Step Toward Diversified Crypto ETFs
Bitwise’s filing for its 10 Crypto Index Fund ETF signals continued innovation in the digital asset space. If approved, the ETF could provide a gateway for institutional and retail investors to access a diversified crypto portfolio under a regulated framework, solidifying Bitwise's position as a leader in crypto asset management, according to Cointelegraph.
