According to Cointelegraph, Bitwise has submitted a proposal to the United States Securities and Exchange Commission (SEC) to introduce 11 new single-token strategy crypto exchange-traded funds (ETFs). This move aims to expand Bitwise's presence in the altcoin market by offering regulated access to various digital assets. The proposed ETFs will focus on individual cryptocurrencies such as Aave (AAVE), Uniswap (UNI), Zcash (ZEC), Bittensor (TAO), Sui (SUI), and Near (NEAR), among others. These funds are designed to provide investors with a structured approach to investing in tokens that have primarily been available through crypto exchanges.
The filing outlines that each ETF will operate as a 'Strategy ETF,' adhering to a rules-based methodology for gaining exposure to the underlying asset. The funds will combine direct spot holdings in the relevant cryptocurrency with positions in exchange-traded products (ETPs) that reference the asset. Additionally, derivatives may be utilized to adjust exposure. Specifically, the funds will invest up to 60% of their assets directly in the token, while at least 40% will be allocated to securities issued by ETPs that invest in or provide exposure to the token. This structure differentiates these ETFs from Bitwise's existing offerings, which include diversified baskets of crypto equities, multi-asset indexes, and futures-based strategies.
Bitwise's current lineup includes spot products such as the Bitwise Bitcoin ETF, Ethereum ETF, Solana Staking ETF, and XRP ETF, which hold their respective assets directly. On the equity and index side, Bitwise offers the Crypto Industry Innovators ETF, holding listed crypto-related companies, and the Bitwise 10 Crypto Index ETF, tracking a basket of the largest digital assets. The firm also operates futures-based strategies centered around CME futures. The new single-token strategy funds will complement the existing offerings, targeting a different risk profile by concentrating on individual coins and applying a consistent rules-based framework across a range of altcoins, including those in decentralized finance, artificial intelligence, and layer-1 ecosystems.
This initiative is part of a broader trend in the crypto ETF/ETP space, with other issuers like Grayscale, VanEck, and 21Shares also seeking approval for spot and thematic products tied to altcoins such as Solana (SOL), XRP (XRP), Dogecoin (DOGE), and Avalanche (AVAX). While some issuers are exploring single-altcoin products or thematic vehicles, Bitwise's proposal is notable for its ambitious scope, offering an 11-fund suite based on a common strategy template. If approved, these ETFs would provide institutions and advisers with an ETF-native method to invest in altcoins like TAO or SUI without directly holding the tokens.
