In a significant move for the cryptocurrency investment space, Bitwise Asset Management has filed to convert its $1.3 billion Bitwise 10 Crypto Index Fund (BITW) into an exchange-traded product (ETP). This filing, submitted on November 14 to NYSE Arca, comes amid growing speculation that U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler may soon resign—a development that could lead to a shift in the regulatory landscape for cryptocurrency ETFs.
The Bitwise 10 Crypto Index Fund, which currently holds $1.3 billion in assets under management, tracks a basket of 10 major digital assets, providing investors with diversified exposure to the largest cryptocurrencies by market capitalization. By transitioning BITW into an ETP, Bitwise aims to enhance transparency and operational efficiency, offering a more structured and accessible investment vehicle for retail and institutional investors alike.
This filing is part of a broader trend toward the development of crypto-focused exchange-traded products, with Bitwise positioning itself at the forefront of the evolving market. The move also comes shortly after Grayscale’s push to convert its Bitcoin Trust into a Bitcoin ETF, a proposal that has been closely watched by market participants.
Bloomberg ETF strategist Eric Balchunas speculated that Gensler’s potential departure could lead to a more favorable regulatory environment for crypto ETFs. Balchunas pointed to the possibility of a more crypto-friendly SEC under a new administration, which could open the door for increased approvals of crypto-focused investment products.
“The regulatory environment is shifting, and while it’s too early to predict the outcome, the situation makes it worth exploring the opportunity,” Balchunas noted.
As the cryptocurrency market matures, more traditional financial players are entering the space with index products to simplify access to digital assets. Earlier this week, Coinbase, in collaboration with VanEck, announced the launch of the COIN50 crypto index fund, designed to track the top 50 cryptocurrencies.
For Bitwise, the transition of its crypto index fund into an ETP could pave the way for broader adoption of crypto index products in traditional financial markets. However, the approval process could take time, especially if there is significant regulatory change following Gensler’s potential resignation.
Bitwise has already established a presence with its spot Bitcoin and Ethereum ETFs and continues to expand its offerings in the rapidly evolving digital asset space.
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