Crypto Quill

Bitwise has filed a new application with the U.S. Securities and Exchange Commission (SEC) for a crypto exchange-traded fund (ETF) that tracks the top 10 cryptocurrencies by market capitalization. This ETF includes leading assets such as Bitcoin, Ethereum, Solana, XRP, Cardano, Avalanche, Chainlink, Polkadot, and Uniswap, making it one of the most diversified crypto ETFs to date.

Bitwise’s 10 Crypto Index ETF

The Bitwise 10 Crypto Index ETF aims to provide broad exposure to the cryptocurrency market by tracking the performance of the ten largest cryptocurrencies. Since 2018, Bitwise has maintained the index, ensuring it reflects the market’s largest and most prominent digital assets. The ETF will offer investors a single vehicle to gain exposure to a diverse range of crypto assets, which are weighted by market cap, potentially reducing individual asset risk while capturing the growth of the overall market.

This new application positions Bitwise to capitalize on growing interest in crypto-based investment products as the U.S. regulatory environment around digital assets begins to solidify. By offering a broad basket of digital assets, the ETF aims to appeal to both seasoned crypto investors and those looking to dip their toes into the emerging market.

Ripple’s Investment in XRP ETP

Ripple has also made significant moves in the crypto ETF space, announcing its investment in Bitwise’s Physical XRP Exchange Traded Product (ETP), previously known as the European XRP ETP. This ETP offers European investors direct exposure to XRP, one of the most established cryptocurrencies in the market.

Ripple’s CEO, Brad Garlinghouse, highlighted the growing clarity in the U.S. regulatory landscape for cryptocurrencies as a key factor driving demand for crypto exchange-traded products (ETPs). According to Garlinghouse, XRP stands out as a “cornerstone” asset for investors seeking digital currencies with real-world utility. The ETP operates under Germany’s BaFin-approved regulatory framework, which provides strong oversight and transparency for investors.

Solana ETF Race and Increased Interest in Digital Assets

Along with its diverse crypto ETF offerings, Bitwise has also entered the Solana ETF race. In doing so, the company joins a growing list of firms vying to launch an ETF focused on Solana, including VanEck and 21Shares, both of which filed their regulatory paperwork in June 2024.

The expansion into Solana ETFs marks a significant development for Bitwise, as it seeks to capture a larger share of the market for digital asset investment products. These efforts are part of a broader trend of institutional and retail investors seeking diversified exposure to cryptocurrencies via regulated investment vehicles.

Earlier this week, WisdomTree also registered an XRP ETF in Delaware, signaling increasing demand for digital asset ETFs. The company is expected to file an S-1 registration with the SEC soon, following in the footsteps of Bitwise and others looking to secure approval for spot XRP ETFs.

The Future of Crypto ETFs

Bitwise’s efforts to expand its portfolio of crypto-focused ETFs come as part of the growing trend of institutional acceptance and retail demand for digital asset products. With an increasing number of companies, including WisdomTree and VanEck, seeking SEC approval for their own crypto ETFs, it’s clear that the digital asset investment vehicle landscape is evolving rapidly.

As U.S. regulators continue to refine their approach to cryptocurrency, these ETFs are set to play an important role in facilitating more widespread investment in the asset class. Whether Bitwise’s new filings will gain approval remains to be seen, but with growing institutional backing and regulatory clarity, the momentum for crypto-based ETFs is undeniable.