On Nov. 27, 2024, Bitwise Asset Management filed with the SEC for an exchange-traded fund (ETF) based on its 10 Crypto Index Fund, which has been running since 2017. The fund, currently valued at $1.4 billion, is heavily focused on Bitcoin (75.14%) and Ethereum (16.42%), which comprise more than 90% of the portfolio. The rest of the fund is split between a handful of other cryptocurrencies, including Solana (4.30%), XRP (1.50%) and Cardano (0.70%). Smaller allocations are made to Avalanche (AVAX), Chainlink (LINK), Bitcoin Cash (BCH), Polkadot (DOT) and Uniswap (UNI).
The ETF is designed to give investors indirect exposure to these digital assets through a regulated financial product. Bitwise has set strict criteria for the assets in the fund, ensuring they meet certain standards such as stable trading volume and secure custody solutions. Assets also must maintain a price above $0.01 for at least 30 consecutive days—a rule that helps filter out speculative or “penny” cryptocurrencies. Coinbase Custody will handle the digital assets, while The Bank of New York Mellon will manage the fund's cash and administrative duties.
This application is part of Bitwise’s broader push to expand its crypto offerings. Just a few days before filing for the 10 Crypto Index Fund ETF, Bitwise registered a statutory trust for a proposed Solana ETF and rebranded its European XRP ETF as the Bitwise Physical XRP ETP. The company had also filed for a direct spot Bitcoin and Ether ETF shortly before. These moves suggest that Bitwise is looking to diversify its products in the crypto market.
NYSE Arca is the exchange seeking to list the new ETF, and if approved, it could allow investors to access crypto assets through traditional brokerage accounts. The SEC has not set a deadline for its decision on the ETF application but has acknowledged the filing. While the approval of spot Bitcoin and Ether ETFs earlier in 2024 has increased optimism in the market, the outcome of this filing remains uncertain.
Bitwise’s filing reflects the growing interest in regulated cryptocurrency investment products. The firm’s push to bring a diversified crypto ETF to market highlights the increasing institutional interest in the space, especially as the regulatory landscape becomes more favorable. If the ETF is approved, it would provide a regulated vehicle for both retail and institutional investors to gain exposure to a range of digital assets.