Bitwise Files With SEC for Cryptocurrency Index ETF

A press release published today, July 24th, has unveiled that Bitwise Asset Management group has filed with the US Securities and Exchange Commission (SEC) to launch the first “publicly-offered regulated cryptocurrency index exchange-traded fund (ETF).”

If approved, the new ETF, known as the Bitwise HOLD 10 Cryptocurrency Index Fund, will track the returns of Bitwise’s HOLD 10 Index, which acts as a “market-cap-weighted index of the 10 largest cryptocurrencies, rebalanced monthly.”

Bitwise Asset Management was founded in 2017 and released the first cryptocurrency index fund, dubbed the Bitwise HOLD 10 Private Index Fund, in late November of that year.

Today’s press announcement featured a number of detailed comments from head staff members of Bitwise:

“We know that the current crypto ETF filings have generated a great deal of discussion and analysis within the SEC about this emerging asset class, and the SEC and its staff, to their credit, have asked for public comment on a wide range of issues relating to these products,” stated John Hyland, Head of Bitwise Global Exchange-Traded Products. “We expect the staff of the SEC has had ongoing discussions with the investment firms making the crypto filings to date, and we look forward to having our own discussions with the SEC about the nature of our proposed offering.”

Index funds have traditionally been considered a sound investment for would-be investors, as they typically cover a wide range of assets which balance out consistent returns in the midst of volatile markets. This can be particularly useful in the case of cryptocurrency, where any single coin can undergo dramatic price fluctuations in surprisingly short periods of time.

Index funds also allow investors to passively manage a wide range of holdings without needing to obsess over daily stock pickings and market timing. Research has shown that long term investors in index funds regularly outperform those who are actively trading.

Bitwise’s Global Head of Research Matt Hougan also emphasized the importance of cryptocurrency index funds in today’s press release:

“Our research shows that an index-tracking basket of multiple cryptocurrencies behaves differently than a single coin. As such, we think both sorts of exposure need to be looked at by investors when considering the growing cryptocurrency space. Our view is that this new area has many similarities to the introduction 10 to 15 years ago of commodity ETFs. At that time, we saw the launch of single-commodity ETFs tracking gold, silver, crude oil, and other commodities, as well as ETFs tracking diversified commodity index baskets. We see a lot of similarities here.”

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