Bitwise Asset Management has taken significant steps towards expanding its range of cryptocurrency products by officially presenting the 10 Crypto Index ETF proposal to the Securities and Exchange Commission (SEC) of the United States.
Insights into Bitwise’s Crypto ETFs
In collaboration with the New York Stock Exchange (NYSE), the company progressed in the application process earlier this month by submitting a 19b-4 form, which has now been recognized by the SEC.
If granted approval, this move would symbolize the launch of the most comprehensive and diversified cryptocurrency ETF in the American market.
Moreover, Bitwise recently made a submission for a Solana [SOL] ETF, aligning itself with notable industry participants such as Canary Capital, VanEck, and 21Shares.
The proposed fund is designed to encompass leading digital assets like Bitcoin [BTC], Ethereum [ETH], Solana, Ripple [XRP], and Cardano [ADA], demonstrating Bitwise’s enduring dedication to monitoring the most valuable cryptocurrencies in the market.
Commenting on this, influencer Big Pey shared thoughts on X, stating,
“Recall when I was speculating about the significant price movement of ADA due to potential ETF purchases? NYSE Arca has now submitted a proposal to the SEC for launching a Bitwise 10 Crypto Index Fund with Cardano being the fifth-largest asset. I anticipate that Coinbase will follow suit, marking the beginning of many new developments.”
What Sets Bitwise Apart?
The proposed Crypto Index ETF by Bitwise presents a meticulously crafted assortment of digital assets. Bitcoin occupies a dominant share of 75.14%, followed by Ethereum at 16.42%, and Solana at 4.3%.
Other assets, such as XRP, Cardano, Avalanche, Chainlink, Bitcoin Cash, Uniswap, and Polkadot, collectively make up the remaining segment of the fund, each with allocations ranging from 1.56% to 0.30%.
For determining its Net Asset Value (NAV) at the close of each trading day, the ETF will utilize pricing data sourced from CF Benchmarks.
Additionally, the fund has established a partnership with Coinbase Custody to ensure secure storage of its cryptocurrency assets.
Complementing this arrangement, BNY Mellon will play a crucial role by acting as the custodian for cash reserves, the Trust’s administrator, and its transfer agent, ensuring smooth operational oversight.
Rise of Institutional Participation
The escalating interest in crypto ETFs signifies the intensifying competition among asset managers seeking approval from U.S. regulatory bodies.
Recent submissions from well-known entities like NYSE Arca for Bitcoin and Ethereum ETPs, Hashdex’s amended S-1 for the Nasdaq Crypto Index US ETF, and Grayscale’s endeavor to incorporate altcoins like Solana and Avalanche in its Digital Large Cap Fund underscore the industry’s development.
In addition, Franklin Templeton’s foray into this arena with a proposed ETF that tracks Bitcoin and Ethereum reflects the substantial institutional enthusiasm for broadening crypto investment avenues.
These ongoing advancements herald a transformative phase for the U.S. market as regulators deliberate on the future landscape of crypto ETFs.