The article pertains to the NYSE Arca's application to the U.S. Securities and Exchange Commission (SEC) for the listing of an exchange-traded product (ETP) based on the Bitwise 10 Crypto Index Fund (which carries the symbol BITW).
📌 Key points
* Entity submitting the application: NYSE Arca.
* The product in question: Bitwise 10 Crypto Index Fund (BITW), which has been operational since 2017 and has approximately $1.3 billion in assets under management (AUM) (depending on the date of the article).
* The aim of the application: to convert the current trust fund into an exchange-traded product (ETP). ETPs are considered a "more efficient, convenient, and beneficial way to provide exposure to cryptocurrencies" and offer advantages such as enhanced regulatory protection.
* Fund composition: The fund aims to track an index consisting of the top 10 cryptocurrencies by market capitalization, with risk screening and monitoring, and is rebalanced monthly.
* As of the time of filing (the date of the data in the article), the fund's primary focus was on Bitcoin (BTC) and Ethereum (ETH), which together make up more than 90% of the portfolio.
* Other allocations included cryptocurrencies such as Solana (SOL), XRP, Cardano (ADA), Avalanche (AVAX), Chainlink (LINK), Bitcoin Cash (BCH), Polkadot (DOT), and Uniswap (UNI).
* Proposed listing market: NYSE Arca.
* Broader context: This action reflects the growing trend of asset management companies, such as Bitwise, to bring regulated investment products for cryptocurrencies to traditional markets, especially after the approval of Bitcoin and Ethereum exchange-traded funds (ETFs) earlier.
💡 Importance
If this listing is approved by the Securities and Exchange Commission, it will allow investors to access a diversified basket of cryptocurrency assets through traditional brokerage accounts, making it easier for them to invest in this sector. This move demonstrates Bitwise's commitment to converting the fund into an ETP structure to reduce the potential gap between the fund's trading price and its net asset value (NAV).
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