Trading under the ticker BITW on the OTCQX Best Market, the Bitwise 10 Crypto Index Fund gives investors exposure to the ten largest cryptocurrencies by market cap. As of October 31, 2024, the fund’s holdings included major players like Bitcoin, Ethereum, Solana, Cardano, and Bitcoin Cash.
The planned change to ETP structure is expected to increase operational efficiencies and add additional measures for investor protection. It will employ the method of continuous share creation and redemption, which is based on the fund’s net assets (NAV). The fund ascribe to the investment strategy in which Bitwise 10 Large Cap Crypto Index is tracked, which is updated on a monthly basis.
The constraints of investment in this index are systematic-based and include the exclusion of assets exposing risks of non-compliance or limited liquidity. Bitcoin and Ethereum securities top the fund holdings and constitute more than 90% of the overall weight of the portfolio.
How The Approval Could Turn Bitwise into an Exchange-Traded Product
Should the SEC approve the filing, the ETP will be enabled to manage under Rule 8.800-E of NYSE Arca regarding investments related to Commodities and Digital assets. It’s not entirely clear what the plan will look like, but this structure seems to try to enhance price accuracy through the use of an arbitrage mechanism.
The filings also show the company’s strategy to enhance the crypto investment scope while assuring reasonable regulatory clarity. Last week, Chief Executive Officer Hunter Horsley stressed how the ETP format may enhance the investing landscape in terms of ease and variety of getting into cryptocurrency investments.
The American SEC however is yet to give the green light. There have been previous proposals that have been procedural hurdles and regulators have mentioned issues like markets’ manipulation and no such control. Growing institutional interest in crypto does however support the argument for such regulated elements.
Ripple Shows Support for Rebranded Bitwise XRP ETP
Ripple has announced plans to invest in Bitwise’s XRP exchange-traded product (ETP) as part of a rebranding effort aimed at strengthening its foothold in Europe.
This development comes after Bitwise forayed into the European market in August after it purchased the ETC Group, which is a cryptocurrency investment firm with $ 1 billion in total managed assets. Their portfolio carries a number of physically backed crypto ETPs such as Bitcoin (BTCE) and Ethereum with staking (ET32) Solana (ESOL) and others including the GXRP.
A physical ETP directly tracks the performance of the assets it represents, which the issuer buys and holds to back the product.
Bitwise Joins Race for Solana ETF Approval
Bitwise has tried to appeal to US markets for a Solana ETF for an uncontrolled period of time now. Yesterday, the firm submitted an application to the SEC, becoming one of the many companies that want to launch such Solana ETF.
This makes Bitwise the fourth to throw its hat in the ring, after Canary Capital who filed in October, and VanEck and 21Shares who started the race in June.
There has been a growing shift in possibilities around regulations around the crypto space and with U.S. elections moving ever closer, this is not surprising. Current SEC Chair Gary Gensler is poised to leave upon Donald Trump taking office in January.
Should it be rubber stamped, Wall Street investors would be able to trade SOL, the native token for the Solana network much like ETH is used on the Ethereum network. This could serve to broaden the appeal of Solana to average investors.
Bitwise continually tests the boundaries of crypto investment and industry in a much more active view. With this filling of SEC and Bitwise backing from Ripple, it sends a message that the firm is well placing itself in the digital assets market. A Solana ETF, if approved, could hold prospects for investors interested in seeking exposure for diversification.
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