Originally published on: November 15, 2024
Bitwise Asset Management has taken a significant step towards launching an exchange-traded product (ETP) that will include a diversified portfolio of 10 cryptocurrencies. The company has filed a request with the SEC through NYSE Arca to list the Bitwise 10 Crypto Index Fund (BITW) as an ETP.
The fund will offer exposure to various leading cryptocurrency assets like Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP, Cardano (ADA), Avalanche (AVAX), Bitcoin Cash (BCH), Chainlink (LINK), Uniswap (UNI), and Polkadot (DOT). With Bitcoin dominating 75.1% of the portfolio as of October 31, 2024, this ETP aims to provide investors with a diversified and efficient way to gain crypto exposure.
Bitwise CEO Hunter Horsley expressed confidence in ETPs as the most effective means of accessing the crypto market. The company is dedicated to converting the fund into an ETP structure, emphasizing the benefits it brings in terms of regulatory protections and shareholder efficiency.
One of the key advantages of ETPs is the ability to trade on the secondary market, closely reflecting the fund’s net asset value (NAV). By accepting subscriptions and redemptions ongoingly, ETPs have an integrated arbitrage mechanism that enhances liquidity and price discovery.
The filing represents an important milestone for Bitwise as it seeks to transition its $1.3 billion trust into an ETP. According to Bloomberg analyst Eric Balchunas, this move is logical given the regulatory landscape under a potential SEC chair appointed by Donald Trump. However, Balchunas emphasizes that further insights and clarity are needed in the evolving crypto space.
This development comes on the heels of NYSE Arca’s filing to list a Grayscale fund holding spot cryptocurrencies like BTC, ETH, SOL, XRP, and AVAX. The growing interest in crypto-related ETPs highlights the increasing demand for convenient and regulated ways to access the digital asset market.
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