Asset Management Firm Bitwise Files for 10 Crypto Index ETF with SEC

Highlights:

• Bitwise’s 10-Crypto Index ETF will track top cryptocurrencies like Bitcoin, Ethereum, and Solana with weighted proportions.
• SEC has acknowledged Bitwise’s crypto ETF submission, initiating a review process with no set decision deadline.
• Bitwise has strengthened its European presence and rebranded its XRP ETF after acquiring the ETC Group.

Digital asset manager Bitwise has submitted a proposal to the United States Securities and Exchange Commission (SEC) to launch its 10-Crypto Index Exchange-Traded Fund (ETF). The product will track the Bitwise 10 Large Cap Crypto Index (BITW). It will include major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), Cardano (ADA), Uniswap (UNI), Polkadot (DOT), Chainlink (LINK), Avalanche (AVAX), and Bitcoin Cash (BCH). 

BREAKING: @BitwiseInvest FILES FOR BITWISE 10 CRYPTO INDEX ETF ( $BTC, $ETH, $SOL, $XRP, $ADA, $AVAX, $LINK, $BCH, $DOT, $UNI) WITH SEC pic.twitter.com/vvx1UNi9Mv

— DEGEN NEWS (@DegenerateNews) November 27, 2024

The firm’s exchange partner, the New York Stock Exchange (NYSE), officially submitted the 19b-4 filing on November 14. The SEC has now recognised the application.

The Bitwise 10 Crypto ETF

The fund will give investors indirect exposure to the underlying cryptocurrencies by tracking these assets in weighted proportions. Within the Crypto Index ETF, Bitcoin holds a 75.14% share, Ethereum accounts for 16.42%, and Solana represents 4.3%. XRP will account for 1.56% of the fund, followed by Cardano at 0.66%, Avalanche at 0.55%, Chainlink at 0.39%, and Bitcoin Cash at 0.38%. Polkadot and Uniswap will account for 0.30% and 0.31% of the shares, respectively.

ETF shares will be issued and redeemed exclusively for cash to mitigate market manipulation. This aligns with the SEC’s growing focus on ensuring safe and secure crypto investment options. The move follows the SEC’s recent approval of spot Bitcoin and Ethereum ETFs.

The ETF has partnered with Coinbase Custody to manage its cryptocurrency component. Additionally, the Bank of New York Mellon will have three key roles in the fund: custodian for cash holdings, administrator of the Trust, and transfer agent.

SEC Acknowledges Crypto ETF Submission

The commission has formally recognized the submission, triggering a countdown for approval or rejection. However, no decision deadline has been set yet. Just months ago, the possibility of approving more crypto ETFs beyond Bitcoin and Ethereum seemed uncertain. However, with Gary Gensler announcing his resignation as SEC Chair, industry optimism has grown. Bitwise is leveraging this positive shift to push its crypto ETF initiatives.

Bitwise Expands Crypto Investment Opportunities

If approved, the 10-Crypto Index ETF could significantly improve access between the traditional and digital asset markets. Bitwise has a track record of introducing innovative crypto investment products. Earlier this year, the platform filed requests for spot ETFs focused on Solana and XRP. In addition to its U.S. operations, Bitwise has also expanded its presence in Europe.

Bitwise Asset Management now manages over $11 billion in Assets Under Management (AUM). On Nov. 27, Bitwise rebranded its European XRP ETF. The rebranded fund is now called the Bitwise Physical XRP ETP, launched in 2022. The rebranding follows Bitwise’s acquisition of the ETC Group in August, adding $1 billion in managed assets. The acquisition included popular products such as the Bitcoin ETP (BTCE), Ethereum with staking (ET32), and the Solana ETP (ESOL).