Crypto fund manager Bitwise has filed with the U.S. Securities and Exchange Commission (SEC) to launch eleven single-token “strategy” crypto exchange-traded funds (ETFs), expanding the corporate’s crypto ETF presence deeper into the altcoin market.
The proposed funds would offer targeted exposure to assets similar to Aave (AAVE), Uniswap (UNI), Zcash (ZEC), Bittensor (TAO), Sui (SUI) and Near (NEAR), amongst others, and supply investors with regulated access to tokens which have previously been traded totally on crypto exchanges.
According to the filing, each product is designed as a “strategy ETF,” moderately than a straightforward spot vehicle, and follows a rules-based guide for a way it invests within the underlying asset.
Broadly speaking, the funds would mix direct money holdings within the relevant cryptocurrency with positions in exchange-traded products (ETPs) also referencing that asset, and will use derivatives to fine-tune exposure.
According to the filing, each fund would derive its exposure by investing “as much as 60% of its assets directly” within the token and “not less than 40% of its assets” in securities issued by a number of exchange-traded products that invest directly in or provide exposure to the token.
Bitwise Crypto ETF Submissions | Source: SEC
This makes these ETFs structurally different from Bitwise's existing offerings, that are mostly diversified baskets of crypto stocks (like Coinbase), multi-asset indices or futures-based strategies.
Bitwise’s crypto offerings
Bitwise already has a fairly complete US roster. Its spot products include Bitwise Bitcoin ETF, Bitwise Ethereum ETF, Bitwise Solana Staking ETF and Bitwise XRP ETF, which hold their respective assets directly.
On the stocks and indexes side, Bitwise offers the Bitwise Crypto Industry Innovators ETF, which holds publicly traded crypto-related firms, and the Bitwise 10 Crypto Index ETF, which tracks a vetted basket of the biggest digital assets. The company also operates futures-based strategies based on CME futures.
The latest single token strategy funds would sit alongside the present funds but would goal a distinct sort of risk. Instead of diversified baskets, each ETF focuses on one coin and applies the identical rules-based framework to a family of altcoins spanning decentralized finance, artificial intelligence and Layer 1 ecosystems.
A broader wave of crypto ETP/ETP filings
The move comes amid a broader wave of ETF and ETP activity, including Grayscale's filing on Tuesday to convert its Bittensor Trust right into a spot ETF on the NYSE Arca.
In recent months, issuers similar to Bitwise, VanEck and 21Shares have also launched or applied for approval of spot and thematic products related to altcoins similar to Solana (SOL), XRP (XRP), Dogecoin (DOGE) and Avalanche (AVAX).
While other issuers are moving into the person altcoin space, launching or applying for one-off spot products tied to individual tokens or AI or DeFi-themed vehicles, Bitwise's offering is more ambitious: an 11-fund suite based on a typical strategy template to present US investors access to altcoins via ETFs.
