- Bitwise submits a 10 Crypto Index ETF proposal to the SEC for approval.
- Crypto ETFs gain momentum as competition among asset managers intensifies in the U.S. market.
As a seasoned crypto investor with a knack for spotting trends and understanding market dynamics, I find the recent surge of interest in crypto ETFs by asset managers truly exhilarating. The proposed 10 Crypto Index ETF by Bitwise, partnering with the NYSE, is a significant step towards legitimizing digital assets as a viable investment option.
Bitwise Asset Management has taken substantial steps forward in broadening its cryptocurrency products, formally presenting the proposal for a 10 Crypto Index ETF to the United States Securities and Exchange Commission (SEC) for consideration.
Details of the Bitwise crypto ETFs
Collaborating with the New York Stock Exchange (NYSE), the company expedited its application procedure last week by submitting a Form 19b-4, which has since been approved by the Securities and Exchange Commission (SEC).
Should it be approved, this move will represent the debut of a broad and varied cryptocurrency ETF on the American stock market.
Additionally, Bitwise has also applied for a Solana Exchange-Traded Fund (ETF), joining forces with other market heavyweights such as Canary Capital, VanEck, and 21Shares in this endeavor.
As a crypto investor, I’m excited about this fund as it’s designed to incorporate prominent digital currencies like Bitcoin [BTC], Ethereum [ETH], Solana, Ripple [XRP], and Cardano [ADA]. This aligns with Bitwise’s consistent dedication to following the market trends by focusing on the most valuable cryptocurrencies.
Remarking on the same, influencer Big Pey took to X and noted,
“Remember when I was speculating that ADAs HUGE price movement was from someone purchasing ADA for an ETF? NYSE Arca just submitted a filing to the SEC to launch a Bitwise 10 Crypto Index Fund with Cardano as the fifth largest asset. I imagine Coinbase will follow, first of many.”
What’s more?
In summary, the Crypto Index ETF proposed by Bitwise features a well-structured blend of digital currencies. Notably, Bitcoin takes up approximately 75.14%, while Ethereum occupies around 16.42% and Solana claims about 4.3%.
Apart from Bitcoin, other digital assets such as Ripple (XRP), Cardano, Avalanche, Chainlink, Bitcoin Cash, Uniswap, and Polkadot make up the rest of the portfolio, with individual allocations ranging between 1.56% and 0.30%.
At the end of every trading day, the ETF will determine its Net Asset Value (NAV) by employing price data sourced from CF Benchmarks.
Furthermore, the fund collaborates with Coinbase Custody to ensure secure storage of its digital currencies.
To supplement this arrangement, BNY Mellon will assume a crucial position, acting as the cash reserve custodian, administrative trustee, and transfer agent. This role ensures smooth operational oversight.
Other institutions jumping in
It’s clear that the rising interest in cryptocurrency ETFs underscores the intensifying rivalry among investment firms seeking endorsement from U.S. regulatory bodies.
The submissions from notable entities such as NYSE Arca for Bitcoin and Ethereum ETPs, Hashdex’s updated application for a Nasdaq Crypto Index US ETF, and Grayscale’s proposal to incorporate altcoins like Solana and Avalanche into its Digital Large Cap Fund emphasize the continuous development within the industry.
Moreover, Franklin Templeton’s move to launch an ETF that follows both Bitcoin and Ethereum shows the growing institutional appetite for broadening their cryptocurrency investment choices.
These advancements indicate that the U.S. market is entering a significant period of change, as authorities consider the potential future of cryptocurrency exchange-traded funds (ETFs).
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2024-11-28 13:43