Bitwise, a prominent crypto asset manager, has filed 11 new applications for cryptocurrency exchange-traded funds (ETFs) with the US Securities and Exchange Commission (SEC). This significant move, made on December 30, 2023, represents one of the largest single-day registrations for crypto ETFs, highlighting the growing institutional interest in investment products centered around specific tokens.
The proposed ETFs are designed as “strategy” funds, aiming to monitor a diverse array of blockchain protocols. Each fund is permitted to allocate up to 60% of its total assets to the cryptocurrency it tracks, with the remaining assets invested in exchange-traded products (ETPs) and derivatives such as futures and options. This hybrid model seeks to provide investors with direct exposure while ensuring regulatory compliance and maintaining liquidity.
Wide-Ranging Sector Focus
Bitwise’s applications encompass a broad spectrum of decentralized finance (DeFi) protocols, including well-known platforms like Aave and Uniswap. The funds also target infrastructure-focused networks such as NEAR and Sui, as well as Layer-2 scaling solutions like Starknet. Additionally, the applications include a privacy-focused ETF centered on Zcash, and products linked to emerging niches like Bittensor’s AI-driven marketplace and Ethena’s synthetic dollar model.
Each proposed fund aims to maintain at least 80% exposure to its designated token or related ETPs and derivatives. The filings also allow for the use of Cayman Islands subsidiaries to enhance tax efficiency and manage derivative exposure.
Regulatory Changes Foster ETF Development
The SEC’s introduction of generic listing standards for crypto ETFs in late 2025 has significantly streamlined the approval process for asset managers, enabling faster market entry for new products. Bitwise’s ETFs are anticipated to become effective approximately 75 days after the filing date and are expected to trade on NYSE Arca. Custody and administrative responsibilities will be shared among established financial institutions and crypto-native firms. The Bank of New York Mellon will provide traditional securities custody, while digital assets will be secured through Coinbase Custody Trust Company and BitGo Europe GmbH.
Despite the solid infrastructure, these funds carry certain risks. Regulatory uncertainty regarding the classification of specific tokens could affect fund operations if legal interpretations shift. Additionally, reliance on European ETPs introduces potential risks related to issuer creditworthiness and timing differences in market valuations.
Bitwise remains optimistic about the future, believing that increased institutional participation, declining interest rates, and reduced volatility tied to leverage could elevate Bitcoin and the broader cryptocurrency market over the coming years. By submitting these applications, Bitwise is positioning itself as a leader in the expanding crypto ETF market, indicating that regulated access to altcoins may soon become mainstream.
This article is intended for informational purposes only and does not constitute financial advice. Investors are encouraged to conduct their own research before making any investment decisions.
