Bitwise Files for 10 Crypto Index Fund ETF with the SEC

Bitwise Files for 10 Crypto Index Fund ETF with the SEC

Digital asset manager Bitwise submits proposal for a new crypto-focused exchange-traded fund (ETF), expanding its offerings in the growing cryptocurrency investment space.


On November 27, Bitwise Asset Management, a leading digital asset manager, filed an application with the U.S. Securities and Exchange Commission (SEC) to list an exchange-traded fund (ETF) based on its existing 10 Crypto Index Fund (BITW). The proposed ETF, which would be listed on the New York Stock Exchange (NYSE) Arca, is designed to offer investors indirect exposure to a diverse portfolio of cryptocurrencies, including Bitcoin (BTC), Ether (ETH), and several other major digital assets.


A Diversified Crypto Portfolio

Launched in November 2017, the Bitwise 10 Crypto Index Fund aims to track the performance of a broad range of digital assets. While the fund’s portfolio is heavily weighted toward Bitcoin and Ether, it also includes a selection of other prominent cryptocurrencies, including Solana (SOL), Ripple (XRP), Avalanche (AVAX), Chainlink (LINK), Cardano (ADA), Bitcoin Cash (BCH), Uniswap (UNI), and Polkadot (DOT). This diversified exposure provides investors with a broader slice of the cryptocurrency market, beyond just the two leading assets, Bitcoin and Ether.


The proposed ETF would hold the underlying cryptocurrencies through a custodian, ensuring the safekeeping of the portfolio’s assets. The filing specifies that the ETF’s holdings will be limited to the selected digital assets and cash, and there are no plans to include other assets outside this portfolio.


Significant AUM and Custody Partners

The Bitwise 10 Crypto Index Fund currently manages $1.4 billion in assets under management (AUM), with Bitcoin making up 75.14% of the fund and Ether comprising 16.42%. Coinbase Custody will serve as the custodian for the crypto assets within the fund, while the Bank of New York Mellon has been designated as the custodian for the cash holdings, as well as the administrator and transfer agent for the fund.


This structure ensures that the fund’s digital assets are securely managed by a trusted institution, with BNY Mellon overseeing its financial operations and cash management.


Regulatory Approval Pending

While the SEC has not yet set a timeline for approving or rejecting the application, it has acknowledged the submission. The filing represents a significant step for Bitwise in expanding its product offerings, as the company has been active in the crypto ETF market in recent months. Just a few days prior, on November 27, Bitwise rebranded its European XRP ETF to the Bitwise Physical XRP ETP, further cementing its role in the growing cryptocurrency investment sector.


Additionally, Bitwise has filed to list an ETF with direct exposure to spot Bitcoin and Ether, and a proposed spot Solana ETF was registered in Delaware on November 20. These filings indicate that Bitwise is keen on offering a diverse range of crypto investment vehicles to meet growing demand.


A Growing Crypto ETF Market

Bitwise’s application for a crypto-focused ETF follows a series of recent moves in the digital asset space. In 2023, the SEC approved the launch of spot Bitcoin ETFs, followed by approval for spot Ether ETFs in May 2024. These approvals have paved the way for more crypto-focused financial products to enter the U.S. market, attracting both institutional and retail investors.


Bitwise’s filing is part of the broader trend of increasing institutional interest in cryptocurrency investment products. The firm, which manages over $11 billion in assets, is capitalizing on the shift in the regulatory environment, which has become more favorable toward cryptocurrencies in recent years. With pro-crypto policies gaining traction in the U.S. government, experts believe that this is just the beginning of an era of greater accessibility to cryptocurrency investments.


Looking Ahead

As the SEC reviews Bitwise’s application, the proposed 10 Crypto Index Fund ETF could be another milestone in the expansion of crypto ETFs in the U.S. market. If approved, the ETF will allow investors to gain diversified exposure to the cryptocurrency market without needing to manage individual digital assets directly.


Given the increasing adoption of cryptocurrency among institutional investors and the growing number of investment products available, Bitwise’s latest filing reflects the company’s confidence in the future of digital assets and their role in global financial markets.

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