Bitwise Asset Management has filed an official SEC filing for filing its 10Crypto Index ETF. The ETF is designed to track the performance of 10 cryptocurrency mainstays, such as Bitcoin and Ethereum, but also Solana, which lack any physical currencies backing them.
The SEC recognized the filing through the New York Stock Exchange (NYSE) Arca which filed Form 19b-4 earlier this month.
The ETF’s prices will be weighted in relation to the top digital assets. The fund will consist of 75.14% in Bitcoin — the largest component. The total fund will be made up of 8.8% managed by Ethereum, followed by 4.3% from Solana.
Bitwise 10-Crypto Index ETF to Track Major Cryptos
The 10-Crypto Index ETF from Bitwise will include the larger cryptocurrencies, such as Bitcoin, Ethereum, Solana, and XRP.
Therefore, additional assets would include Cardano, Avalanche, Chainlink, Bitcoin Cash, Polkadot, and Uniswap. They will value these assets based on their market cap and proportionately allocate them to the fund.
As the largest holding, Bitcoin will account for three-quarters of the ETF. 16.42% will belong to Ethereum, which makes it the second-largest contender. Other assets, such as XRP (1.56 percent) and Cardano (0.66 percent), will have smaller weights compared to Solana (4.3 percent).
The overall portfolio is skewed to cater to investors who want diversified exposure to the top-performing cryptocurrencies. Those market values will change over time, and the ETFs’ holdings will change with them. The proportions are weighted to represent the asset’s importance in total crypto market share.
BNY Mellon Handles Cash and Operations for ETF
Coinbase Custody has been named custodian of the crypto assets held in the fund by Bitwise. Coinbase will store and manage the digital assets in the ETF safely.
In addition, the fund’s administrator for those cash holdings and transfer agents is the Bank of New York Mellon (BNY Mellon).
BNY Mellon’s unit will also manage the fund in the area of daily operations and NAV calculation. The fund will rely on CF Benchmarks, a leading crypto pricing data provider, to determine the ETF’s NAV. It aims to understand that the ETF will operate efficiently and cater to regulatory requirements.
Bitwise Acquisition of ETC Group Boosts Growth
Bitwise is adding more products to this cryptocurrency ETF space, including filing for additional ones. As part of Bitcoin and Ethereum ETP, Bitwise has also filed for a 10 Crypto Index ETF.
Optimism in the market has been a growing force for the firm, and after recent leadership changes at the SEC, the firm has been encouraged.
After acquiring the ETC group in August, the company is entering the crypto ETF market. The acquisition, which included $1 billion in managed assets, is a watershed moment for Bitwise as it seeks additional growth in the global crypto market.
Another part of its strategy is to expand its footprint when the ETC Group’s Physical XRP ETP is rebranded Bitwise Physical XRP ETP.
