As a seasoned crypto investor with over a decade of experience navigating the volatile and ever-evolving digital asset market, I find the recent moves by NYSE Arca and Bitwise Asset Management to be a promising development for mainstream adoption of cryptocurrencies.
Bitwise Asset Management has proposed a new crypto-focused exchange-traded product (ETP) for listing on the New York Stock Exchange Arca, pending approval from the U.S. Securities and Exchange Commission (SEC). This ETP would contain a selection of 10 different cryptocurrencies.
On November 15, Bitwise revealed that NYSE Arca submitted a 19b-4 form to list the Bitwise 10 Crypto Index Fund (BITW) as an Exchange Traded Product (ETP). This fund distributes assets across ten different cryptocurrencies, such as Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP (XRP), Cardano (ADA), Avalanche (AVAX), Bitcoin Cash (BCH), Chainlink (LINK), Uniswap (UNI) and Polkadot (DOT).
By October 31, 2024, the composition of our fund’s investments is as follows: Approximately 75.1% is in Bitcoin, 16.5% in Ether, 4.3% in Solana, and 1.6% in XRP. The rest of the assets make up less than 1% each within the fund’s total holdings.
ETPs “most efficient” vehicle to provide crypto exposure
According to Hunter Horsley, CEO of Bitwise, they consider Exchange-Traded Products (ETPs) as the best options for offering crypto exposure due to their efficiency, convenience, and utility. He announced that Bitwise intends to transform the fund into an ETP.
The firm pointed out that Exchange-Traded Products (ETPs) come with benefits like regulatory safeguards and enhanced shareholder productivity. Additionally, the ETF provider clarified that these products can continuously accept new investments (subscriptions) and process withdrawals (redemptions).
Bitwise explains that this setup establishes an arbitrage system, enabling the fund to engage in trades on the secondary market, a sector more closely tied to its Net Asset Value (NAV) worth.
Making the filing represents another progression in Bitwise’s endeavor to transform its $1.3 billion trust into a structure akin to an Exchange-Traded Product (ETP).
According to Bloomberg analyst Eric Balchunas, the proposed move “is logical” given a potential Donald Trump-led SEC chair could bring about any changes. However, he emphasized that this isn’t a certainty and further information is required for clarity in the situation.
NYSE Arca also wants to list Grayscale crypto index ETF
The action is in response to NYSE Arca’s application to introduce a Grayscale fund that invests in various cryptocurrencies as a tradeable security. On October 29th, NYSE Arca submitted an application to list the Grayscale Digital Large Cap Fund as an Exchange-Traded Fund (ETF). This fund contains a diverse portfolio of popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP) and Avalanche (AVAX).
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2024-11-15 16:34