Bitwise’s $1.4 Billion Crypto ETF

Bitwise’s $1.4 Billion Crypto ETF: The Gateway to Bitcoin, Ethereum, and More — SEC Approval Could Change Everything!

On November 27, 2024, Bitwise Asset Management made headlines by filing with the SEC for an exchange-traded fund (ETF) based on its 10 Crypto Index Fund, a product it has managed since 2017. The move could reshape how retail and institutional investors access a diversified portfolio of digital assets through regulated financial channels.

The Breakdown: What’s in the 10 Crypto Index ETF?

The fund boasts a $1.4 billion valuation, with over 90% of its holdings concentrated in Bitcoin and Ethereum:

• Bitcoin (BTC): 75.14%
• Ethereum (ETH): 16.42%
  The remaining assets include:
• Solana (SOL): 4.30%
• XRP (Ripple): 1.50%
• Cardano (ADA): 0.70%
• Other smaller allocations: Avalanche (AVAX), Chainlink (LINK), Bitcoin Cash (BCH), Polkadot (DOT), and Uniswap (UNI).

This composition reflects a strategic focus on market-leading cryptocurrencies while diversifying into promising layer-1 networks and blockchain projects.

Why This ETF Matters

Bitwise’s 10 Crypto Index Fund ETF aims to simplify crypto investments by offering:

1. Regulated Exposure: Provides access to cryptocurrencies via a financial product overseen by regulators, reducing risks like custody or direct trading.
2. Rigorous Standards: Includes only cryptocurrencies that maintain a stable trading volume, secure custody solutions, and a minimum price threshold of $0.01 for 30 days — excluding overly speculative assets.
3. Established Partners:

• Coinbase Custody will manage the digital assets.
• The Bank of New York Mellon will oversee cash management and administrative duties.

Bitwise’s Crypto Expansion Plans

This ETF is just one of several strategic moves by Bitwise in 2024:

• Spot Bitcoin & Ether ETFs: Filed earlier in the year.
• Proposed Solana ETF: Registered through a statutory trust.
• Rebranded XRP ETF in Europe: Now called the Bitwise Physical XRP ETP.

These initiatives reflect Bitwise’s ambition to position itself as a leader in regulated crypto investment products amid growing institutional demand.

Could This Be a Game-Changer?

If approved, the ETF will list on NYSE Arca, allowing investors to purchase shares through traditional brokerage accounts. This marks a significant step in integrating cryptocurrency with mainstream finance.

While the SEC’s approval remains uncertain, the successful launch of spot Bitcoin and Ether ETFs earlier this year has fueled optimism.

Why It’s Important for the Industry

Bitwise’s filing underscores a pivotal moment for cryptocurrency:

1. Institutional Adoption: The ETF could attract institutional investors who have been cautious about entering the crypto space due to regulatory concerns.
2. Regulatory Clarity: The SEC’s willingness to review such filings signals a more mature regulatory environment.
3. Broader Accessibility: Retail investors can gain exposure to a curated selection of crypto assets without navigating complex exchanges or wallets.

Bitwise’s 10 Crypto Index ETF could revolutionize how both institutional and retail investors approach the crypto market. With a focus on regulated, diversified exposure, the ETF offers a pathway for mainstream adoption while reflecting the industry’s maturation.

Approval could pave the way for similar diversified ETFs, further embedding cryptocurrency into the fabric of traditional finance.

Bitwise’s $1.4 Billion Crypto ETF was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.