Bitwise Files for 10 Crypto Index Fund ETF, Partnering with Key Firms for Security and Management

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As a seasoned investor with a knack for spotting promising opportunities, I find the recent move by Bitwise to expand its crypto-focused ETF offerings quite intriguing. With over $11 billion in assets under management, they are clearly making strategic moves to capitalize on the positive sentiment towards cryptocurrencies.

Bitwise, a company specializing in digital asset management, has submitted an application for an exchange-traded fund (ETF). This application is built upon their existing 10 Crypto Index Fund. On November 15, they filed a Form 19b-4 with the New York Stock Exchange (NYSE).

Through a recent filing dated November 27, it’s been disclosed that the Bitwise 10 Crypto Index Fund ETF provides investors with an indirect method of owning a diverse set of cryptocurrencies.

The Bitwise 10 Crypto Index ETF contains a variety of cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, Cardano (ADA), Avalanche (AVAX), Bitcoin Cash (BCH), Polkadot (DOT), Uniswap (UNI), and Chainlink (LINK). Here are some details about each:

As a researcher examining our cryptocurrency portfolio, I can share that the majority of our fund’s value is invested in Bitcoin, accounting for approximately 75.10%. Ethereum holds 16.5%, Solana takes up 4.30%, and XRP, Cardano (ADA), Avalanche (AVAX) each have a smaller allocation at 1.50%, 0.70%, and 0.60% respectively. Other significant investments include Bitcoin Cash (BCH) at 0.40%, Polkadot (DOT) and Uniswap (UNI) at 0.30% each, and Chainlink (LINK) accounting for another 0.40%.

Key Partnerships Ensure Trust Fund Security

According to the filing, the Trust’s Net Asset Value (NAV) is computed at the end of each business day. This calculation will be carried out using data from CF Benchmarks Ltd. It’s also worth noting that Bitwise has partnered with Coinbase Custody for secure storage of the Trust’s digital assets, ensuring their safety and proper management. Additionally, the Bank of New York Mellon is responsible for managing the Trust’s cash reserves and handling any cash assets. They made this declaration:

The responsibility for holding the trust’s assets will be managed by Coinbase Custody Trust Company, LLC (referred to as the ‘Custodian’). The Bank of New York Mellon will perform several roles in relation to the trust: it will look after the cash assets (in this capacity, known as the ‘Cash Custodian’), administer the trust (acting as the ‘Administrator’), and handle the transfer of shares (serving as the ‘Transfer Agent’).

Industry Awaits SEC’s Decision on Crypto ETFs

The agency has acknowledged receiving the filing, but has not yet set a timeline for either rejection or approval. Until recently, discussions about approving cryptocurrency ETFs were clouded with uncertainty. However, the resignation of the SEC Chairman and the emergence of a pro-crypto U.S. president have sparked optimism within the crypto industry. Now, many anticipate more supportive regulations for the sector to thrive.

In a move capitalizing on the favorable crypto climate, Bitwise, similar to numerous other crypto businesses, is broadening its objectives to introduce Solana-centric ETFs. The firm has extended its concentration by participating in the burgeoning initiative to establish an ETF dedicated to Solana. With over $11 billion in assets under management, this asset manager recently rebranded its European XRP ETF, which was initially launched in 2022.

After the SEC’s acceptance of the filing, numerous asset management companies and cryptocurrency investors are eagerly awaiting the decision. It seems improbable that the current government will endorse ETFs based on past events. Yet, there is optimism that the Trump administration could potentially grant approval.

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2024-11-28 14:12