Bitwise Asset Management has taken another step towards expanding its crypto offerings by filing for a new exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). The proposed ETF would track a basket of ten leading cryptocurrencies, including Bitcoin, Ethereum, and Solana.
A Diversified Crypto Basket
The proposed fund aims to provide investors with diversified exposure to the cryptocurrency market. Bitcoin, the largest cryptocurrency by market capitalization, would hold the largest weight in the index at 75.1%. Ethereum, the second-largest cryptocurrency, would account for 16.5%. Other notable inclusions include Solana, XRP, Cardano, Avalanche, Chainlink, Bitcoin Cash, Polkadot, and Uniswap.
Custodial Arrangements and Pricing
Coinbase Custody, a leading cryptocurrency custodian, will oversee the fund’s crypto holdings. The Bank of New York Mellon will act as the custodian for cash reserves, administrator, and transfer agent. The fund’s net asset value (NAV) will be calculated using pricing data from CF Benchmarks.
Bitwise’s Expanding Crypto Universe
Bitwise has been actively expanding its crypto product offerings. In November, the firm surpassed $10 billion in assets under management (AUM) and filed for a combined Bitcoin and Ethereum ETP. Additionally, it rebranded its European XRP ETF and registered a statutory trust for a spot Solana ETF.
Today, NYSE Arca filed to list a Bitwise ETP that would hold both spot bitcoin AND ether, weighted by market cap.
— Bitwise (@BitwiseInvest) November 26, 2024
The goal: Give investors balanced exposure to the two largest crypto assets in the world in an easy-to-access format. pic.twitter.com/TcBpQM8OhW
Regulatory Tailwinds and Headwinds
The recent political landscape has created a more favorable environment for crypto ETFs. However, regulatory hurdles, particularly for altcoin ETFs, remain significant. While the SEC’s decision on Bitwise’s proposal is still pending, the firm’s proactive approach positions it to capitalize on growing investor interest in the crypto market.
As the crypto industry continues to evolve, it’s clear that institutional investors are increasingly seeking exposure to digital assets. ETFs offer a regulated and accessible way to participate in the crypto market, and Bitwise’s latest filing underscores this growing trend.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
