Bitwise 10 Crypto Index ETF Now Seeking SEC Approval

Key Points:

• Asset management firm Bitwise has submitted a 10 Crypto Index ETF application to the SEC.
• The Bitwise 10 Crypto Index ETF will rebalance monthly based on market capitalization, with Coinbase Custody storing assets.

The application by asset management firm Bitwise for a 10 Crypto Index ETF has now been formally filed with the SEC.

Read more: Bitwise Physical XRP ETP Now Backed by Ripple 

Bitwise 10 Crypto Index ETF Proposed to SEC

The proposal, filed jointly with the New York Stock Exchange, or NYSE, would track the two largest cryptocurrencies by market capitalization. NYSE filed the accompanying Rule 19b-4 application earlier this month, which the SEC has now acknowledged, thereby beginning the review process.

The Bitwise 10 Crypto Index ETF seeks to track the Bitwise 10 large-cap cryptocurrencies, namely Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, Cardano (ADA), Avalanche (AVAX), Chainlink (LINK), Bitcoin Cash (BCH), Polkadot (DOT), and Uniswap (UNI). It will rebalance on a monthly basis so that it is compositionally current. Holdings will be market-capitalization weighted, based on free-float market capitalization.

The proposed ETF would be listed for trading on NYSE Arca pursuant to Rule 8.800-E. Coinbase Custody has been selected as the custodian for the underlying assets, while The Bank of New York Mellon will serve as the fund’s cash custodian and administrator. In an effort to avoid potential market manipulation, shares will only be issued and redeemed for cash.

Possible Market Consequences if the SEC Approves

The Bitwise filing follows the SEC’s recent approval of spot Bitcoin and Ethereum ETFs, reflecting the regulator’s growing acceptance of crypto investment products. Bitwise has also filed for an XRP exchange-traded product in Europe and previously proposed spot ETFs based on Solana and XRP.

If approved, the Bitwise 10 Crypto Index ETF would increase access to digital assets for institutional and retail investors alike, offering a diversified, regulated investment vehicle. The SEC has not announced a final decision date for this application, so the situation remains in limbo as stakeholders await further developments.