Overview
Digital asset management firm Bitwise has filed for an exchange-traded fund (ETF) based on its Bitwise 10 Crypto Index Fund, offering investors exposure to 10 major cryptocurrencies. The filing, submitted to the SEC, outlines partnerships with key firms like Coinbase Custody and BNY Mellon for security and administration.
Key Highlights
- Diversified Portfolio: The ETF includes Bitcoin (75.1%), Ethereum (16.5%), Solana (4.3%), XRP (1.5%), Cardano (0.7%), Avalanche (0.6%), and smaller allocations to Polkadot, Chainlink, and others.
Security & Management:
- Coinbase Custody will safeguard digital assets.
- BNY Mellon will manage cash holdings and administrative duties.
- Daily NAV Calculations: CF Benchmarks Ltd will compute the fund’s Net Asset Value.
Cryptocurrency Allocations
| Asset | Allocation |
|-------------|------------|
| Bitcoin | 75.10% |
| Ethereum | 16.50% |
| Solana | 4.30% |
| XRP | 1.50% |
| Cardano | 0.70% |
| Avalanche | 0.60% |
| Others* | 1.30% |
*Includes Bitcoin Cash, Polkadot, Uniswap, and Chainlink.
Strategic Partnerships
1. Coinbase Custody
- Role: Secure digital assets with institutional-grade custody solutions.
- Benefit: Enhances trust through regulated asset protection.
2. BNY Mellon
Responsibilities:
- Cash custody.
- Fund administration.
- Transfer agent services.
👉 Explore secure crypto investment options
Regulatory Landscape and Industry Sentiment
The crypto industry anticipates potential ETF approvals under a more favorable regulatory environment. Key factors include:
- Pro-crypto political shifts in the U.S.
- Resignation of SEC Chairman, signaling possible policy changes.
FAQs
Q: When will the SEC decide on this ETF?
A: No deadline is set, but approval could take months.
Q: Why is Bitcoin’s allocation so high?
A: Bitcoin’s market dominance and liquidity make it a cornerstone of crypto ETFs.
Q: How does this ETF differ from others?
A: It offers diversified exposure beyond Bitcoin/Ethereum, including altcoins like Solana and XRP.
Future Outlook
Bitwise’s move aligns with growing demand for regulated crypto investment vehicles. Success could pave the way for:
- More altcoin-focused ETFs.
- Mainstream adoption via traditional finance channels.
👉 Learn about crypto ETF trends
Conclusion
This ETF combines diversification, institutional security, and regulatory clarity efforts, positioning it as a potential game-changer. Investors should monitor SEC developments closely.