Bitwise Asset Management, the investment firm that pioneered the first privately-offered cryptocurrency index fund, announced today that it will file the registration statement with the Securities and Exchange Commission (SEC) that will introduce the first publicly-offered cryptocurrency index exchange-traded fund (ETF) to the capital markets.
The focus of the Bitwise HOLD 10 Index Cryptocurrency Fund is to track the returns of Bitwise’s HOLD 10 Index–a market-cap-weighted index consisting of the 10 largest cryptocurrencies. The HOLD 10 Index captures approximately 80% of the total market capitalization of the cryptocurrency market based on liquidity, concentration and custody limitations.
“Our research shows that an index basket of multiple cryptocurrencies behaves differently than a single coin,” said Matt Hougan, Bitwise Global Head of Research. “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.”
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A registration statement relating to the shares of the HOLD 10 Index Cryptocurrency Fund has been filed with the SEC, but has not yet been declared effective. Furthermore, the shares may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. Additionally, an offering of the shares of the Bitwise HOLD 10 Index Cryptocurrency Fund will be made only by means of a prospectus.
Bitwise Asset Management’s filing with respect to offering a cryptocurrency-related ETF comes as other firms like VanEck and SolidX Partners Inc are trying to do the same. Obtaining approval from a government entity like the SEC will provide a veil of authenticity to help legitimize cryptocurrencies and gain more approval from investors.