Bitwise 10 Crypto Index Fund Gains SEC Approval to Trade on NYSE Arca as ETP

Bitwise's $1.25 billion 10-asset crypto index fund has received approval from the U.S. Securities and Exchange Commission (SEC) to list on NYSE Arca as a regulated exchange-traded product (ETP), enabling institutions to gain index-style exposure to leading cryptocurrencies.

Key Takeaways

The Bitwise 10 Crypto Index Fund is now a regulated ETP on NYSE Arca after gaining SEC approval.
The fund oversees $1.25 billion and tracks the ten largest cryptocurrencies.
This marks the second U.S.-listed multi-asset crypto index that operates as a fully regulated product.
The transition allows greater access for financial advisors and institutional investors.
The fund's holdings are based on a rules-based index methodology, ensuring liquidity and market capitalization criteria.
Monthly rebalancing adjusts to market conditions, maintaining optimal exposure.
The SEC approval signifies a significant step forward for the cryptocurrency asset class.

Bitwise crypto index fund on NYSE Arca trading floor screen

The Bitwise 10 Crypto Index Fund has officially transitioned from an over-the-counter product to a regulated exchange-traded product on NYSE Arca, following SEC approval. This fund tracks the ten largest cryptocurrencies by market capitalization and is now one of the few U.S.-listed multi-asset crypto indices operating under full regulatory oversight.

Bitwise Expands Options for Institutional Crypto Investments

Previously, the Bitwise fund has been operating as an over-the-counter product since its inception in 2020. The change to a regulated exchange platform broadens access for financial advisors, retirement plans, and institutional investors, who often require exchange-listed securities.

The Bitwise fund employs a systematic index strategy that establishes its holdings based on both market capitalization and liquidity. Its current portfolio includes prominent cryptocurrencies such as Bitcoin, Ether, Solana, and XRP, with monthly rebalancing to adapt to varying market conditions.

“This marks a pivotal moment for cryptocurrencies as a viable asset class,” remarked Hunter Horsley, CEO of Bitwise. “With the fund listed as an ETP on NYSE Arca today, cryptocurrencies now have an index fund traded on the exchange.”

Matt Hougan, the Chief Investment Officer at Bitwise, highlighted that this uplisting allows investors to engage with crypto adoption without having to pick individual assets. “The transition to NYSE Arca represents a significant leap forward,” Hougan explained. “This enables individuals to invest in the concept without needing to forecast the future, trusting that the fund will hold the largest and most successful assets in the market.”

The SEC approval was granted after a lengthy review earlier in 2024, with NYSE Arca's proposed rule change for the product’s listing certified as effective on December 4, 2024, according to regulatory documents.

The Bitwise fund joins Grayscale’s multi-asset crypto ETP as one of the two U.S.-listed products providing diversified index-style exposure to cryptocurrencies under comprehensive exchange oversight. Prior to these offerings, American investors interested in similar exposure often turned to offshore vehicles, private funds, or over-the-counter products, which typically had limited liquidity.

The regulated ETP structure follows the same regulations that apply to traditional commodity and equity-linked exchange-traded products, and it addresses crucial considerations related to custody, taxation, and regulations that have caused hesitation among certain institutional investors regarding direct ownership of digital tokens.