Bitcoin, XRP and Cardano together on Wall Street? That's the new ETF proposal
November 28, 2024
Investment firm Bitwise made the presentation, which brings together 10 cryptoassets in total.
The Coinbase exchange is listed as the custodian of the ETF.
Investors will have indirect exposure to 10 digital assets.
The cryptocurrency ETF craze continues unabated. Investment manager Bitwise has filed an application for authorization to issue an exchange-traded fund that groups together 10 digital assets.
The proposed financial instrument is based on the existing Bitwise 10 Crypto Index Fund, launched in November 2017.
The fund, the document states, is made up of a number of different allocations. The majority of the total investment share is allocated to bitcoin (BTC) at 75%.
In second place is ether (ETH), Ethereum's cryptocurrency with 16%. To a lesser extent, solana (SOL), Ripple's XRP, cardano (ADA), avalanche (AVAX), chainlink (LINK), Bitcoin Cash (BCH), Uniswap (UNI) and Polkadot (DOT).
Below you can see the list of investment distribution for each asset indicated in the document.
List of cryptocurrencies included in the ETF proposal.
According to the application submitted to the United States Securities and Exchange Commission (SEC), the Bitwise 10 Crypto Index Fund ETF intends to provide indirect exposure to the underlying assets.
“The Trust’s sole assets will be the Portfolio Assets and cash. The Trust does not intend to own any digital assets other than the Portfolio Assets and has expressly disclaimed ownership of such assets,” the document states.
The fund's digital assets are served by the Coinbase exchange and Bank of New York Mellon.
Bitwise wants a solana ETF
Bitwise, which currently has $11 billion in assets under management and manages one of only 12 bitcoin spot ETFs in the United States, also entered the race for Solana's fund.
Last week, it filed an application for a fund based on the cryptocurrency. This makes Bitwise the fourth company competing to offer a solana ETF, behind the companies Canary Capital, VanEck and 21Shares, as reported by CriptoNoticias.
These companies are preparing for a 2025 that could prove beneficial for their applications. Matthew Sigel, head of digital asset research at VanEck, said the odds of a solana ETF in the United States “are overwhelmingly high by 2025.”
This optimism is based on Donald Trump's victory in the presidential elections on November 5 and his expressed support for the cryptocurrency sector.
The Republican Party leader promised friendly regulation to encourage industry growth and also promised to fire SEC Chairman Gary Gensler.
Sigel believes Gensler’s departure will result in more digital asset ETFs. “We expect the SEC to approve more crypto products than it has in the past four years,” he added.
In any case, Gensler's retirement is imminent. The official himself announced that he will leave his post on January 20, 2025. It will be precisely the day of Trump's inauguration.
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