Bitwise
Files To Turn $1.4
Billion Crypto
Index Fund Into
an ETF
Bitwise Files To Turn $1.4 Billion Crypto Index Fund Into an ETF
One of crypto's oldest index funds aims for the big leagues as NYSE Arca
files to list shares under new digital asset rules.
By Vince Dioquino
Nov 28, 2024 Nov 28, 2024
3 min read
Bitwise. Image: Shutterstock
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Something interesting just landed on the U.S. Securities and Exchange
Commission’s (SEC) desk: NYSE Arca, regarded as Wall Street's electronic
home for exchange-traded funds (ETFs), wants to list Bitwise's $1.4
billion crypto index fund.
The numbers on the document seem to show where the smart money thinks crypto
is headed. Filed Wednesday, the proposed ETF reveals a carefully weighted
portfolio that's anything but a crypto free-for-all.
Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin still commands the lion's share at 75.14%, while Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum
accounts for 16.42%. Together, these two make up over 91% of the fund's
holdings.
The remaining slice? It's divided among what Bitwise considers as mid-cap
tokens: Solana (4.30%), XRP (1.50%), and Cardano (0.70%).
The rest of what's left from the the pie goes to prominent projects which
the crypto-focused investment firm consider as small-cap tokens: Avalanche
(AVAX) with 0.60%, Chainlink (LINK) and Bitcoin Cash• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin (BCH) going for 0.40%,
and Polkadot (DOT) coupled with Uniswap (UNI) for 0.30%.
Weighing in
The fund isn't just fumbling around for trending tokens though. Each
included asset needs to clear some serious hurdles: stable trading volume,
proper custody solutions, and zero known security issues.
Perhaps most importantly, the assets need to maintain a price above $0.01 for
at least 30 consecutive days—a rule that weeds out the crypto equivalent of
penny stocks.
Bitwise isn't taking chances with custody either. It's bringing in
Coinbase Custody for the digital assets and The Bank of New York• Экономика » Финансы » Банк » Банки США » Bank of New York
• Экономика » Экономика США » Банки США » Bank of New York
• Соединённые Штаты Америки (США) » Экономика США » Банки США » Bank of New York
• Объект организация » Организации по алфавиту » Организации на Ba » Bank of New York Mellon to
handle cash and administrative duties.
Making moves
Looking at the data, there are a few interesting patterns that suggest bigger
moves in the ETF space.
First, NYSE Arca's filing includes a crucial 90% surveillance sharing
agreement requirement. This same framework helped get spot Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin ETFs and
Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum ETFs get off the ground earlier this year.
Just last week, Bitwise filed for a Solana ETF as SOL approached a new
all-time high. Notably, Bitwise has combined three other Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin and Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum
futures ETFs into a single momentum-based strategy, a move undertaken as "
Uptober " began.
The fund's been around since November 2017, making it one of
crypto's oldest index products. Now it wants to graduate to the NYSE
Arca, and under new frameworks such as Rule 8.800-E which sets itself
specifically for digital assets, it might just have a shot.
If approved, it would let investors grab a slice of the broader crypto market
through their regular brokerage accounts.
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