Bitwise Files for Multi-Crypto ETF After Gary Gensler Resignation Hint

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As a seasoned researcher who has been closely monitoring the cryptocurrency landscape for years now, I find the recent developments in the world of digital assets truly fascinating. The announcement by Bitwise to convert its 10 Crypto Index Fund (BITW) to an exchange-traded product (ETP) is a significant stride in the right direction.

On Thursday, Asset manager Bitwise submitted an application for a diversified ETF containing various cryptocurrencies, as calls for the replacement of SEC Chair Gary Gensler increase. The proposed Bitwise 10 Crypto Index Fund (BITW) is expected to include a variety of ten digital assets, making it one of the largest by market capitalization. This move aims to make crypto investing more accessible for individual investors who wish to diversify their holdings across several digital assets.

Bitwise Moves to Convert a $1.3 Billion Crypto Index Fund to a Crypto ETF

On Thursday, November 14th, Bitwise Asset Management revealed that NYSE Arca had submitted a request to list their 10 Crypto Index Fund (BITW) as an exchange-traded product (ETP). This marks the world’s first and largest crypto index fund, according to Bitwise, with over $1.3 billion in assets under management.

Making this submission signifies a crucial advancement in the asset manager’s mission to restructure the publicly traded trust into an Exchange Traded Product format. This multi-cryptocurrency ETP is expected to enhance transparency and streamline operations for investors. If endorsed, BITW’s transformation could potentially serve as a catalyst for wider acceptance of crypto index products within the financial sector.

This announcement arises following Gary Gensler’s confirmation of his stance on crypto regulation and hints about his potential resignation. Moreover, Bloomberg ETF strategist Eric Balchunas has expressed approval for this move, as it follows closely on the heels of Grayscale’s efforts to introduce a similar ETF product.

Balchunas pointed out that the change in leadership at the SEC, with Gary Gensler stepping down and potentially being replaced by someone from the Trump administration, might signal a shift in regulatory attitude, possibly leading to more approvals for cryptocurrency Exchange-Traded Funds (ETFs).

Balchunas mentioned that, as things stand now, it’s tough to predict the chances. However, given the changing regulatory landscape, it seems like it could be worthwhile to give it a shot.

Crypto Index Funds in Demand

With cryptocurrencies becoming more established and expanding their presence within the worldwide financial industry, investors are growing increasingly confident in introducing crypto index funds. This week, Coinbase unveiled its COIN50 crypto index fund, which includes the top 50 digital currencies.

The recently introduced COIN50 – a joint creation between Coinbase and VanEck’s Market Vector – provides a unique perspective on the evolution of the cryptocurrency market. According to Coinbase, this index serves as an invaluable resource for traders seeking a more comprehensive understanding of prevailing market patterns.

Bitwise is planning to change its cryptocurrency index fund into an Exchange-Traded Product (ETP) format, which may require time for SEC approval, especially if Chair Gensler steps down during the transition period. Already, the asset manager has introduced both a spot Bitcoin ETF and a spot Ethereum ETF in the market, with plans to further grow its product lineup.

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2024-11-15 10:24