Crypto index fund adds ETF application to the growing list

Bitwise Asset Management follows VanEck and blockchain company SolidX in applying to US regulators for approval of its exchange-traded fund.

Bitwise Asset Management has filed a registration statement for a new fund, which it says is the first publicly-offered cryptocurrency index exchange-traded fund (ETF).

The ETF will be called the Bitwise HOLD 10 Cryptocurrency Index Fund and aims to track the returns of Bitwise’s HOLD 10 Index, a market-cap-weighted index of the 10 largest cryptocurrencies, rebalanced monthly.

The cryptocurrency asset manager said it has filed the application with the Securities and Exchange Commission (SEC).

The filing comes after asset manager VanEck and blockchain company SolidX filed an application at the end of June. According to industry experts, any approval of an ETF could open the flood gates to more endorsements and applications.

“Our research shows that an index-tracking basket of multiple cryptocurrencies behaves differently than a single coin,” said Matt Hougan, global head of research at Bitwise.

“As such, we think both sorts of exposure need to be looked at by investors when considering the growing cryptocurrency space. Our view is that this new area has many similarities to the introduction 10 to 15 years ago of commodity ETFs. At that time, we saw the launch of single-commodity ETFs tracking gold, silver, crude oil, and other commodities, as well as ETFs tracking diversified commodity index baskets. We see a lot of similarities here.”

Bitwise’s HOLD 10 Index captures approximately 80% of the total market capitalisation of the cryptocurrency market, according to the asset manager.