Bitwise Applies for 10 Crypto Index Fund ETF with Key Partnerships
Digital asset management firm Bitwise has filed for exchange-traded funds (ETF) based on its existing 10 Crypto Index Fund. The New York Stock Exchange (NYSE) submitted the filing on November 15.
The Bitwise 10 Crypto Index Fund ETF will provide investors indirect exposure to various cryptocurrencies, as detailed in the filing submitted on November 27.
The fund's cryptocurrency mix includes Bitcoin, Ethereum, Solana, XRP, Cardano, Avalanche, Bitcoin Cash, Polkadot, Uniswap, and Chainlink. Each cryptocurrency has specific allocations: Bitcoin comprises 75.10%, Ethereum 16.5%, Solana 4.30%, XRP 1.50%, Cardano 0.70%, Avalanche 0.60%, with Bitcoin Cash at 0.40%, Polkadot 0.30%, Uniswap 0.30%, and Chainlink 0.40%.
Key Partnerships Ensure Trust Fund Security
The Trust's Net Asset Value (NAV) will be calculated daily, relying on CF Benchmarks Ltd. Bitwise has partnered with Coinbase Custody for asset security and management. The Bank of New York Mellon will manage the Trust’s cash holdings and assets. They stated:
“Coinbase Custody Trust Company, LLC will maintain custody of the Trust’s assets (the “Custodian”). The Bank of New York Mellon will be the custodian for the Trust’s cash holdings (in such role, the “Cash Custodian”), as well as the Trust’s administrator (in such role, the “Administrator”) and transfer agent (in such role, the “Transfer Agent”).”
Industry Awaits SEC's Decision on Crypto ETFs
The SEC has acknowledged the filing but has not set a deadline for approval or rejection. Discussions around crypto ETF approvals have been uncertain; however, recent changes in leadership within the SEC and a pro-crypto US president have raised expectations for more favorable regulations.
Bitwise is leveraging this positive sentiment to pursue crypto-focused ETFs, including one centered around Solana. The firm manages over $11 billion in assets under management (AUM) and recently rebranded its European XRP ETF launched in 2022.
With the SEC's acknowledgment of the filing, many firms and investors are awaiting the outcome. Approval remains uncertain under the current administration, but there are hopes that future governance could be more accommodating.