The Bitwise 10 Crypto Index ETF has been submitted to the US SEC in anticipation of approval, despite the evolving regulatory landscape.
Bitwise, an asset management firm, has formally submitted the 10 Crypto Index ETF products to the US Securities and Exchange Commission (SEC). The 19b-4 was officially filed by the New York Stock Exchange (NYSE), the firm’s exchange partner, earlier this month. The commission has now acknowledged the 19b-4.
The Bitwise 10 Crypto ETF
The Bitwise 10 Crypto Index ETF comprises Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP, as indicated in the filing. Cardano (ADA), Avalanche (AVAX), Chainlink (LINK), Bitcoin Cash (BCH), Polkadot (DOT), and Uniswap (UNI) are among the other cryptocurrencies.
The fund will provide investors with indirect exposure to the underlying currencies by tracking the prices of these assets in weighted proportions. The holdings of each asset in the Crypto Index ETF are distinctive. Bitcoin will account for 75.14% of the Index, Ethereum 16.42%, and Solana 4.3%.
Other cryptocurrencies, such as XRP, will account for 1.56% of the fund, Cardano for 0.66%, Avalanche for 0.55%, Chainlink for 0.39%, and Bitcoin Cash for 0.38%. Uniswap and Polkadot, the final assets in the Index, will have a 0.31% and 0.30% share, respectively.
After each trading day, the fund will utilize the CF Benchmarks pricing data to ascertain its Net Asset Value (NAV).
It is important to note that the ETF has designated Coinbase Custody as its partner for the crypto component of the fund. The Bank of New York Mellon will also fulfill the fund’s triple function. BNY Mellon will act as the transfer agent, administrate the Trust, and serve as the fund’s cash holdings custodian.
Bitwise has been the subject of increased media attention in recent months. The 19b-4 for the Bitcoin and Ethereum ETP was lodged by NYSE Arca earlier this week in anticipation of approval, as previously reported by Coingape.
The Obstacle of Obtaining US SEC Approval
The issue of approving additional crypto ETFs beyond Bitcoin and Ethereum was dubious several months ago; however, industry experts are now optimistic following Gary Gensler’s resignation as the Chair of the US Securities and Exchange Commission.
Bitwise is capitalizing on this optimistic sentiment to further its crypto ETF agenda. The asset manager has also enrolled in the Solana ETF train this month, in addition to the combined Bitcoin and Ethereum ETP that was lodged this week.
It is still being determined whether the filings will be approved, as the countdown for SEC feedback has been initiated.