NYSE Arca has filed a request with the United States Securities and Exchange Commission (SEC) to list an exchange-traded product (ETP) managed by Bitwise Asset Management. The ETP, called the Bitwise 10 Crypto Index Fund (BITW), will track a diversified basket of 10 leading cryptocurrencies.
Details of NYSE Arca Filing
Bitwise announced on Nov. 15 that the filing, a 19b-4 form submitted by NYSE Arca, represents a pivotal step in transitioning the Bitwise 10 Crypto Index Fund into an ETP. The fund allocates investments across top digital assets, including Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP, Cardano (ADA), Avalanche (AVAX), Bitcoin Cash (BCH), Chainlink (LINK), Uniswap (UNI), and Polkadot (DOT).
As of Oct. 31, 2024, the fund’s portfolio is dominated by Bitcoin and Ether, which account for 75.1% and 16.5% of the holdings, respectively. Solana represents 4.3%, while XRP makes up 1.6%. The remaining six assets individually comprise less than 1% of the fund’s allocation.
CEO Highlights Benefits of ETP Structure
Bitwise CEO Hunter Horsley emphasised the advantages of ETPs in the announcement, describing them as “the most efficient, convenient, and useful vehicles for providing crypto exposure.” He reiterated Bitwise’s commitment to transitioning the $1.3 billion trust into an ETP structure.
The firm outlined that ETPs offer key benefits such as regulatory protections, improved shareholder efficiency, and mechanisms for maintaining a closer alignment with the fund’s net asset value (NAV). The continuous subscription and redemption model used by ETPs also enables a robust arbitrage mechanism, ensuring better price accuracy on secondary markets.
This filing comes shortly after NYSE Arca’s attempt to list another diversified crypto fund, the Grayscale Digital Large Cap Fund, as an ETF. That fund tracks a portfolio including Bitcoin, Ether, Solana, XRP, and Avalanche.
Commenting on the latest Bitwise filing, Bloomberg analyst Eric Balchunas noted that the move aligns with evolving regulatory possibilities under a potential SEC leadership change. He stated that a Trump-elected SEC chair could pave the way for broader crypto product approvals, though he cautioned that this outcome is far from guaranteed.
