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 that holds a basket of 10 cryptocurrencies.
On Nov. 15, Bitwise announced that NYSE Arca filed a 19b-4 form to list the Bitwise 10 Crypto Index Fund (BITW) as an ETP. The fund has 10 different allocations across top cryptocurrency assets, including Bitcoin (BTC), Ether (ETH), Solana Solana (SOL), XRP (XRP), Cardano (ADA), Avalanche (AVAX), Bitcoin Cash (BCH), Chainlink (LINK), Uniswap (UNI) and Polkadot (DOT).
As of Oct. 31, 2024, the fund’s portfolio consists of 75.1% Bitcoin, 16.5% Ether, 4.3% Solana, and 1.6% XRP. The remaining assets each account for less than 1% of the fund’s holdings.
ETPs “most efficient” vehicle to provide crypto exposure
Bitwise CEO Hunter Horsley said in the announcement that the company views ETPs as the “most efficient, convenient, and useful vehicles for providing crypto exposure.” He said the company is committed to converting the fund into an ETP.
The company said ETPs offer advantages such as regulatory protections and increased shareholder efficiency. The ETF issuer explained that an ETP would accept subscriptions and redemptions on an ongoing basis.
Bitwise said this creates an arbitrage mechanism, allowing the fund to trade on the secondary market, which is more closely linked to its net asset value (NAV).
The filing marks another step in Bitwise’s effort to convert its $1.3 billion trust into an ETP structure.
Source: Eric Balchunas
Bloomberg analyst Eric Balchunas said the move “makes sense” as a Donald Trump-elected SEC chair would make “anything” possible. Despite this, Balchunas said that it is far from a “slam dunk” and the space needs more intel.
Related: Goldman Sachs holds $710M in Bitcoin ETFs — SEC filing
NYSE Arca also wants to list Grayscale crypto index ETF
The move follows NYSE Arca’s filing to list a Grayscale fund holding a basket of spot cryptocurrencies. On Oct. 29, NYSE Arca filed to list the Grayscale Digital Large Cap Fund as an ETF. The fund holds a crypto index portfolio of BTC, ETH, SOL, XRP and AVAX.
Magazine: BTC’s ‘incoming’ $110K call, BlackRock’s $1.1B inflow day, and more: Hodler’s Digest