Bitwise Investments has filed a new application with the SEC for a diversified crypto index ETF. The proposed fund aims to track the Bitwise 10 Crypto Index, which includes the ten largest cryptocurrencies by market value. This move highlights Bitwise’s commitment to offering institutional investors broader access to digital assets while addressing the increasing demand for diversified crypto investment products.
The fund has Bitcoin, Ethereum, Solana, Ripple, Cardano, Avalanche, Chainlink, Bitcoin Cash, Polkadot, and Uniswap. Each asset has been given weights, where Bitcoin constitutes 75.1% of the total portfolio. Ethereum has been allocated 16.5%, Solana 4.3%, XRP 1.56%, and the remaining allocated assets weights between 0.30% to 0.70. The application has been submitted by NYSE Arca with the aim of launching one of the most inclusive crypto ETFs in the United States.
This filing follows Bitwise’s recent Solana ETF application, aligning with its goal to expand its crypto investment products. Early this year, Bitwise released its Bitcoin ETF, known as BITB, to target institutional investors. The firm has continued to look for innovative ways to meet the growing demand for various financial products, particularly in the crypto space. The 10 Crypto Index Fund is therefore derived from Bitwise’s original fund, which was launched back in 2018 and tracks the ten most valuable cryptocurrencies.
The SEC officially acknowledged Bitwise’s submission, marking the start of a regulatory countdown. The commission must approve or reject the application within a defined period. This follows a trend of the SEC adopting a more favorable stance on cryptocurrency, with Bitcoin ETF options recently gaining approval.
Experts speculate that adding Cardano and XRP to the index fund could enhance investor interest. Social media influencer Big Pey highlighted the significance of ADA’s inclusion. He noted that recent price movements might be linked to ETF-related purchases. Cardano ranks as the fifth-largest asset in the portfolio, reflecting its growing adoption and market importance.
SEC Fines Texas Money Manager for Illicit Crypto InvestmentsThe SEC’s decision on Bitwise’s ETF could set a precedent for similar applications. The U.S. regulatory environment is shifting under new leadership, with increased optimism for crypto financial products. Recent filings by VanEck, 21Shares, and Canary Capital also signal rising institutional interest in crypto ETFs.
Bitwise’s broader efforts include its recent application for an XRP exchange-traded product in Europe. This strategy demonstrates the firm’s intention to tap into the increase in institutional demand for diversified cryptocurrency investment. People have set their eyes on the SEC decision, as this move can dramatically shape the crypto market in the future.
