Bitwise Asset Management has taken an important step into the crypto market by filing an application to list its Bitwise 10 Crypto Index Fund (BITW) as an exchange-traded product (ETP) on NYSE Arca. This move seeks to transform a well-known diversified Cryptocurrency investment vehicle, improving efficiency and strengthening investor protection.
Today, NYSE Arca filed to list a Bitwise ETP that would hold both spot Bitcoin AND ether, weighted by market cap.
The goal: Give investors balanced exposure to the two largest crypto assets in the world in an easy-to-access format. pic.twitter.com/TcBpQM8OhW
— Bitwise (@BitwiseInvest) November 26, 2024
Details of the Bitwise proposal
Currently trading under the ticker BITW on the OTCQX Best Market, the fund offers exposure to the ten largest cryptocurrencies by market cap, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Cardano (ADA).
- Background composition: Bitcoin and Ethereum represent more than 90% of the fund’s weight.
- Index methodology: Follows the Bitwise 10 Large Cap Crypto Index, rebalanced monthly and designed to minimize risks such as regulatory uncertainty or low trading volume.
The proposed change to an ETP format will allow the use of share creation and redemption mechanisms aligned to the net asset value (NAV), improving pricing accuracy and offering greater transparency for investors.
Potential benefits of ETP
If approved, the ETP will operate under NYSE Arca Rule 8.800-E, which regulates digital asset-based products. Among its advantages:
- Greater price accuracy: An arbitrage mechanism will align the market value with the NAV.
- Simplified structure: Improves accessibility for investors.
- Commitment to transparency: As of 2021, the fund is notable for being the first crypto index registered as a reporting company with the SEC.
Bitwise CEO Hunter Horsley highlighted that this change seeks to simplify access to cryptocurrency investments, aligning with growing institutional demand.
Regulatory challenges and the current landscape
Although promising, the plan’s success depends on SEC approval. Until now, similar proposals have faced obstacles due to concerns about market manipulation and oversight. However, growing institutional adoption and regulatory advances have strengthened the case for products like this.
Conclusion
Bitwise’s proposal to list BITW as an ETP marks a significant step in the development of regulated crypto investments. While the SEC’s decision remains to be seen, this move reinforces Bitwise’s commitment to offering secure, efficient and accessible solutions in a constantly evolving market.
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