Bitwise has filed for a multi-crypto ETF, the Bitwise 10 Crypto Index Fund (BITW), featuring the top 10 digital assets by market cap.
Bitwise Files Multi-Crypto ETF
On Thursday, Bitwise, an asset manager, submitted an application for a multi-crypto ETF that includes a collection of digital assets. This development is occurring amid an increasing chorus of calls for the resignation of SEC Chair Gary Gensler.
The Bitwise 10 Crypto Index Fund (BITW) will consist of a portfolio of 10 digital assets, which are likely to be the largest by market capitalization. This will simplify the process of investing in cryptocurrency for retail participants who are interested in gaining exposure to a variety of digital assets.
Bitwise is in the process of converting a $1.3 billion crypto index fund to a crypto exchange-traded fund (ETF).
Asset manager Bitwise disclosed on Thursday, November 14, that NYSE Arca has submitted an application to list its 10 Crypto Index Fund (BITW) as an exchange-traded product (ETP). At $1.3 billion in assets under management, this is the world’s first and largest crypto index fund, according to the asset manager.
This filing represents a substantial advancement in the asset manager’s endeavors to convert the publicly traded trust into an ETP structure. This multi-crypto exchange-traded fund (ETF) will enhance transparency and efficacy for investors. The conversion of BITW could facilitate the widespread implementation of crypto index products in the financial markets if it is approved.
This development occurs as Gary Gensler reiterates his stance on crypto regulation and suggests that he may resign in the near future. Eric Balchunas, a strategist at Bloomberg ETFs, also expressed his enthusiasm for this development, noting that it coincides with Grayscale’s most recent initiative to establish a comparable ETF.
Balchunas emphasized the potential shift in regulatory sentiment that could result from the departure of SEC Chair Gary Gensler and the potential appointment of a Trump administration SEC Chair. This could potentially lead to an increase in the approval of crypto ETFs.
“It’s too early to determine the odds. but the evolving regulatory environment makes it worth a try,” stated Balchunas.
Demand for Crypto Index Funds
Market actors are increasingly at ease with the initiation of crypto index funds as cryptocurrencies mature and expand their presence in the global financial sector. Coinbased disclosed its COIN50 crypto index fund earlier this week, which includes the top 50 digital assets.
COIN50, a novel crypto index that was created in partnership between VanEck’s Market Vector and Coinbase, provides a novel method of monitoring the crypto economy’s performance. The index was characterized by Coinbase as a tool that was intended to provide traders with a more comprehensive understanding of the overall market trends.
The SEC’s approval process may be delayed due to the transition period in the event that Gensler resigns, as Bitwise intends to convert its crypto index fund to an ETP structure. The asset manager is currently in the process of expanding its product suite and has already introduced the spot Bitcoin ETF and the spot Ethereum ETF to the market.
