Bitwise Files for 10 Crypto Index Fund ETF with SEC: Key Insights

Bitwise Asset Management Files for 10 Crypto Index Fund ETF

Digital asset manager Bitwise has recently taken a significant step in the cryptocurrency market by filing 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). This move, submitted on November 27, aims to provide investors with indirect exposure to a diversified portfolio that includes major cryptocurrencies such as Bitcoin and Ether.

Portfolio Composition and Custodial Details

The proposed ETF, which is set to be listed on the New York Stock Exchange (NYSE) Arca, focuses on a strategically diversified fund allocation:

Fund Allocation

• 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

The custodial and management structure for the Bitwise 10 Crypto Index Fund ETF is designed for efficiency and security:

• Crypto Custody: Managed by Coinbase Custody.
• Cash Holdings and Administration: Handled by Bank of New York Mellon, which serves as custodian, administrator, and transfer agent.

Fund Size and Objective

The fund currently holds $1.4 billion in assets under management (AUM), with a strict focus on portfolio assets and cash. The fund's primary objective is to provide indirect exposure to cryptocurrencies without direct ownership by the Trust.

Regulatory and Market Context

SEC Review Timeline

The SEC has acknowledged the submission formally but has not set a specific deadline for approval or rejection of the application.

Bitwise’s Market Moves

Bitwise has been actively expanding its product offerings in recent months:

• November 27: Rebranded its European XRP ETF as the Bitwise Physical XRP ETP.
• November 26: Filed for a direct spot Bitcoin and Ether ETF.
• November 20: Registered a statutory trust in Delaware for a spot Solana ETF.

Pro-Crypto Regulatory Landscape

The recent U.S. presidential election results, along with pro-crypto wins in Congress, have led to growing optimism about a more favorable regulatory environment for cryptocurrencies, which may increase the likelihood of ETF approvals.

Significance of the Bitwise 10 Crypto Index Fund ETF

The introduction of the ETF presents a notable opportunity for investors looking for diversified exposure to leading cryptocurrencies. By offering a hedge against volatility while capturing broader market trends, the Bitwise 10 Crypto Index Fund ETF stands to attract attention in the investment community. Furthermore, partnerships with recognized institutions like Coinbase Custody and Bank of New York Mellon bolster investor confidence in the fund’s management and security.

A Step Toward Diversified Crypto ETFs

This filing by Bitwise marks an important milestone toward creating diversified crypto ETFs, reflecting the growing demand for regulated cryptocurrency investment vehicles. As the cryptocurrency landscape continues to evolve, products like the Bitwise 10 Crypto Index Fund ETF illustrate the industry's break into mainstream finance.