Bitwise Files to List Bitwise 10 Crypto Index Fund as ETP
Bitwise, a San Francisco-based crypto asset manager, announced that NYSE Arca has filed to list its flagship product, the Bitwise 10 Crypto Index Fund (BITW), as an exchange-traded product (ETP). This development is significant for the largest crypto index fund, which currently has $1.3 billion in Assets Under Management (AUM).
The Power of an ETP Structure
Launched in 2017, BITW provides diversified exposure to the top ten cryptocurrencies by market capitalization. Transitioning to an ETP structure aims to enhance accessibility, transparency, efficiency, and investor protection. Unlike traditional trust structures, ETPs allow continuous subscription and redemption based on the fund’s Net Asset Value (NAV), minimizing discrepancies between market prices and actual value.
An ETP guarantees regular disclosures, offering better insights into performance and holdings. Aligning with stricter regulatory standards can increase investor confidence in crypto as a legitimate asset class. The filing occurs during a transformative phase for the crypto market, with cryptocurrencies gaining traction in mainstream finance. BITW updates its portfolio monthly to adapt to market changes and reduce risks through specialized screening tools.
If approved, this will solidify Bitwise's industry leadership and promote broader adoption of multi-crypto ETFs, simplifying investment strategies for retail participants.
Regulatory Shifts and Industry Momentum
This filing coincides with speculation about a potential resignation of U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, possibly leading to a more crypto-friendly regulatory environment. Bloomberg ETF strategist Eric Balchunas highlighted a shift in sentiment, particularly as Grayscale advances its crypto ETF push. A new SEC Chair under a Donald Trump administration could expedite approvals for innovative crypto products like BITW’s ETP.
Additionally, Coinbase Global Inc recently launched its COIN50 Crypto Index Fund in collaboration with VanEck’s Market Vector, tracking the top 50 cryptocurrencies by market value to provide broad digital asset exposure.
This trend indicates that crypto index products are becoming essential for investors seeking comprehensive market exposure. While BITW’s transition to an ETP is promising, Bitwise advises caution, noting that the Fund does not provide a complete investment strategy and may not suit all investors.