Bitwise has filed for NYSE Arca to list the Bitwise 10 Crypto Index Fund as an ETP. Bitwise Asset Management's request, if approved, will provide greater access to cryptocurrency investment vehicles as investors enjoy additional access to a diversified basket of cryptocurrencies. Also, the filing makes a significant step for the company toward converting the $1.3B publicly traded trust into an ETP structure.
“We’re excited to announce that today NYSE Arca has filed to list the Bitwise 10 Crypto Index Fund (BITW) – the world’s first and largest crypto index fund – as an ETP. This is the latest step in our efforts to convert the $1.3B publicly traded trust to an ETP structure,” the company announced via its social media handle.
More on Bitwise’s Anticipated ETP Conversion
Bitwise CEO Hunter Horsley highlighted the merits of having an ETP, emphasizing their efficiency and convenience for cryptocurrency exposure. Unlike conventional trusts, ETPs allow ongoing subscriptions and redemptions at the fund’s Net Asset Value (NAV).
According to Bitwise, the NYSE Arca filing represents the next stage in its strategy to broaden institutional and retail participation in crypto markets. While speaking about the recent development, Matt Hougan, Bitwise's chief investment officer, says BITW "opened up new possibilities as the first fund to provide a broad, index-based approach to crypto markets."
The filing comes only a few weeks after Hougan predicted Bitcoin's bullish run. He noted in a social media post that the world's largest cryptocurrency by market capitalization is on track to surpass $100,000 per BTC.
Based on data reports as of October 31, 2024, the Bitwise 10 Crypto Index Fund's portfolio composition demonstrated its preference for representing the broader crypto market, its Bitcoin and Ethereum portfolio taking a combined 91.6% (led by BTC at 75.1%). Solana comes next at 4.3%.
Smaller allocations from Bitwise 10 Crypto Index Fund include XRP (1.6%), Cardano (0.7%), Avalanche (0.6%), Bitcoin Cash (0.4%), Chainlink (0.4%), Uniswap (0.3%), and Polkadot (0.3%). The organization reviews and rebalances these allocations monthly to reflect market conditions, alongside risk screens to exclude high-risk assets.
Meanwhile, Bitwise has advanced in its plans to launch an XRP-focused ETF. The asset manager submitted an updated S-1 registration request with the SEC in the middle of last month. In its filing, the firm supplied details about the trust’s structure, asset custody, and share creation/redemption processes.
Moreover, the company registered a “Bitwise XRP ETF” entity in Delaware. Crypto experts, after observing the timing of this filing, suggest the request may have links to the upcoming U.S. elections.
Final Thoughts
Bitwise announced it is pushing to convert a $1.3B crypto index fund into an ETP after filing a request with NYSE Arca. The November 14, 2024 announcement reveals a new phase in the crypto firm's ongoing effort at converting its publicly traded trust into an ETP.