Bitwise proposes a new ETF based on its 10 Crypto Index Fund

Bitwise Asset Management has filed a proposal with the US Securities and Exchange Commission (SEC) for a new exchange-traded fund (ETF) based on its 10 Crypto Index Fund.

The ETF would include ten leading cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, Cardano (ADA), Avalanche (AVAX), Chainlink (LINK), Bitcoin Cash (BCH), Polkadot (DOT) , and Uniswap (UNI).

Details of the Archive

The fund is designed to reflect the prices of the ten assets in weighted proportions, providing investors with indirect exposure to cryptocurrencies.

Each asset in the crypto index ETF is assigned a specific share, with Bitcoin representing 75.1% of the index, Ethereum 16.5% and Solana 4.3%. XRP represents 1.5%, followed by Cardano at 0.7%, Avalanche at 0.60%, and Chainlink and Bitcoin Cash at 0.4% each. Uniswap and Polkadot complete the index with allocations of 0.3% each.

According to a November 27 filing, the Trust’s assets will be limited to portfolio assets and cash, with no plans to hold digital assets beyond those included in the portfolio. He also explicitly disclaimed ownership of any additional cryptocurrency.

The net asset value (NAV) of the fund will be calculated using price data from CF Benchmarks, which aggregates information from various cryptocurrency trading platforms.

Coinbase Custody will oversee the crypto holdings, while the Bank of New York Mellon will act as cash reserve custodian, administrator and transfer agent. Meanwhile, the SEC acknowledged the request but did not indicate the decision deadline.

Bitwise market movements

Bitwise’s filing comes as the company gains momentum in the crypto market. In early November, the company surpassed the $10 billion mark in assets under management (AUM), earning an additional $1 billion in just 10 days.

The asset manager has also expanded its ETF lineup. On November 26, it revealed that NYSE Arca had filed to list a combined market capitalization-weighted Bitcoin and Ethereum ETP.

The next day, Bitwise renamed its European XRP ETF as the Bitwise Physical XRP ETP. Ripple has also pledged to invest in the product.

Additionally, the firm joined the Solana ETF train earlier this month. On Nov. 20, it registered a statutory trust in Delaware for a proposed Solana spot ETF, which is in addition to its previous application for an XRP exchange-traded fund in the state.

The recent election of Donald Trump to the US presidency and the resignation notice of SEC Chairman Gary Gensler have fueled optimism in the cryptocurrency sector. Many companies are taking advantage of this sentiment to push their crypto ETF offerings, and market expert Nate Geraci previously anticipated a wave of ETF filings following Trump’s triumph.

However, challenges persist. Bloomberg analyst James Seyffart recently warned that significant regulatory hurdles for altcoin ETFs could delay approval timelines.

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