Bitwise Asset Management has recently filed an application to establish an exchange-traded fund (ETF) based on its already existing 10 Crypto Index Fund (BITW). The New York Stock Exchange (NYSE) Arca initiated the listing process for this fund as an exchange-traded product (ETP) on November 15.
According to a filing made to the Securities and Exchange Commission (SEC) on November 27, the newly proposed Bitwise 10 Crypto Index Fund ETF aims to provide investors with indirect exposure to various underlying cryptocurrencies. The custodian designated for this fund will be responsible for retaining custody of the Portfolio Assets. Notably, the index fund features a diverse allocation strategy, primarily investing in Bitcoin (BTC), but it also encompasses other major cryptocurrencies such as Ether (ETH), Solana (SOL), Ripple ( XRP ), Avalanche (AVAX), Chainlink (LINK), Cardano (ADA), Bitcoin Cash (BCH), Uniswap (UNI), and Polkadot (DOT).
The filing specifies that the Trust’s assets will be limited to Portfolio Assets and cash, with a clear disclaimer regarding the ownership of any digital assets outside of these Portfolio Assets. Launched in November 2017, the Bitwise 10 Crypto Index Fund predominantly consists of 75.14% Bitcoin and 16.42% Ether, boasting total assets under management (AUM) of approximately $1.4 billion.
For the crypto-related aspects of the ETF, Coinbase Custody will serve as the partnering custodian, while the Bank of New York Mellon will oversee the fund’s cash management, acting as the Trust’s administrator and transfer agent. The SEC has yet to establish a timeline for its decision on the application, but it has confirmed receipt.
Currently managing over $11 billion in AUM, Bitwise has been actively expanding its portfolio. Recent developments include the rebranding of its European XRP ETF and the filing for direct spot exposure ETFs for Bitcoin and Ether, along with the registration for a proposed Solana ETF. The evolving regulatory environment, following significant political shifts, may also indicate a more favorable stance toward cryptocurrencies in the U.S. market.
