The Securities and Exchange Commission approved Bitwise’s plan to convert the Bitwise 10 Crypto Index Fund (BITW) into a Spot Exchange Transaction Fund (ETF) on Tuesday.
The fund holds 90% of its weight in Bitcoin and Ether (ETH), with the rest spreading to Solana, XRP, Cardano, Avalanche, Chainlink, Bitcoin Cash and Uniswapand Polkadot. It manages $1.68 billion in assets and rebalancing each month.
In 2017, Bitwise launched a fund. The 2.5% expense ratio remains steep by ETF standards, but conversion to Spot ETF makes Bitw the first multi-asset Crypto Index ETF in the United States. Asset Managers have not yet disclosed if their management fees remain at 2.5%.
Similar product, Grayscale’s Digital Large Cap Fund (GDLC), also tracking BTC, ETH, XRP, SOL and ADA, received initial SEC approval before the agency overturned the course, and suspended the fund’s launch.
A letter from the SEC on Tuesday said the committee will consider the commissioned case. The same wording for grayscale in letters received when the ETF pauses.
According to sources who spoke to Coindesk at the time, SEC’s hesitation could be attributed to the need to establish consistent standards for Crypto ETFs, especially for tokens such as XRP and ADA, which do not have standalone ETFs.
SEC’s ETF dockets are busy. On Tuesday, regulators published filings from Franklin Templeton, Fidelity, Invesco Galaxy, and others trying to fix reded mechanics for Bitcoin and/or Ethereum ETF. We have also started reviewing Canary Capital Sui ETFs and extended the deadline for the 21Shares SUI ETF application.
Separately, 21Share has submitted a proposal to track ETF’s Ondo, which tracks tokens, the real-world asset platform Ondo Finance.
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.
