• Crypto & Funx
• 07 Jul, 2024

Bitwise filed for a crypto ETF offering exposure to 10 major cryptocurrencies, including Bitcoin, Ethereum, and Solana.

The fund's Net Asset Value (NAV) will be calculated daily by CF Benchmarks Ltd.

Coinbase Custody will safeguard the ETF's digital assets, while BNY Mellon will manage cash holdings and administrative duties.

Digital asset management firm Bitwise has applied for exchange-traded funds (). This is based on its existing 10 Crypto Index Fund. The New York Stock Exchange (NYSE) filled out the 19b-4 on November 15.

Bitwise 10 Crypto Index Fund ETF will give investors indirect exposure to a range of cryptocurrencies. This was made known through the filing submitted on November 27.

The Bitwise 10 Crypto Index ETF has a mix of cryptocurrencies. The list includes Bitcoin , Ethereum , Solana , XRP , Cardano , Avalanche , Bitcoin Cash , Polkadot , Uniswap , and Chainlink .

Each cryptocurrency has its specific allocation. A larger portion of the fund’s value is tied to Bitcoin, which is 75.10%. ETH is allocated 16.5%, SOL 4.30%, XRP 1.50%, ADA 0.70%, and AVAX 0.60%. Others, including BCH, will occupy 0.40%, DOT 0.30%, UNI 0.30% and LINK 0.40%.

Key Partnerships Ensure Trust Fund Security

Based on the filing, the Trust’s Net Asset Value (NAV) at the end of each business day will be calculated. To do this, the fund will rely on CF Benchmarks Ltd. More so, Bitwise has collaborated with Coinbase Custody to safeguard the Trust’s assets. This will ensure the security and proper management of the funds. Similarly, the Bank of New York Mellon will properly manage the Trust’s cash holdings and handle any cash assets. They :

“Coinbase Custody Trust Company, LLC will maintain custody of the Trust’s assets (the “Custodian”). The Bank of New York Mellon will be the custodian for the Trust’s cash holdings (in such role, the “Cash Custodian”), as well as the Trust’s administrator (in such role, the “Administrator”) and transfer agent (in such role, the “Transfer Agent”).”

“Coinbase Custody Trust Company, LLC will maintain custody of the Trust’s assets (the “Custodian”). The Bank of New York Mellon will be the custodian for the Trust’s cash holdings (in such role, the “Cash Custodian”), as well as the Trust’s administrator (in such role, the “Administrator”) and transfer agent (in such role, the “Transfer Agent”).”

Industry Awaits SEC’s Decision on Crypto ETFs

Although the agency has acknowledged the submission, it is yet to give a deadline to reject or approve the filing. Discussions about the approval of crypto ETFs were largely uncertain before now. However, the resignation notice of the Chairman and the emergence of a pro-crypto US president raised hope within the crypto industry. Many now expect more favorable governance for the industry.

Thus, Bitwise, like many crypto firms, is taking advantage of the positive sentiment to further its efforts to launch crypto-focused ETFs. It has expanded its focus by joining the growing movement to create an ETF centered around Solana. The asset management firm currently has more than $11 billion in AUM. On November 27, it , launched in 2022.

Since the SEC has acknowledged the filing, many asset management firms and crypto investors are anticipating the outcome. It is unlikely that the current administration will approve the ETFs due to the previous scenario. However, there are hopes that the Donald Trump administration could give it the go-ahead.