Bitwise Asset Management announced on November 15, 2024, that it has filed with NYSE Arca to convert its Bitwise 10 Crypto Index Fund (BITW) into an exchange-traded product (ETP). The fund, established in November 2017, is the world's first and largest crypto index fund, managing approximately $1.3 billion in assets.
Transition from Trust to ETP
Currently structured as a publicly traded trust, BITW's conversion seeks to leverage the ETP framework's key advantages, including continuous subscriptions and redemptions at net asset value (NAV). This arbitrage mechanism is designed to keep the fund's secondary market trading price closely aligned with its NAV, reducing the premium/discount volatility that often plagues trust-based products.
Bitwise CEO Hunter Horsley stated: "We believe ETPs are among the most efficient, convenient, and useful vehicles for providing crypto exposure. We remain committed to converting BITW to an ETP to deliver a better experience for investors."
Fund Composition and Market Impact
As of the filing, BITW's portfolio allocation includes Bitcoin (75.1%), Ethereum (16.5%), Solana (4.3%), followed by smaller positions in XRP (1.6%), Cardano (0.6%), Avalanche (0.6%), Bitcoin Cash (0.4%), Chainlink (0.4%), Uniswap (0.3%), and Polkadot (0.3%). This capitalization-weighted index approach offers investors diversified exposure across the crypto market.
Bitwise Chief Investment Officer Matt Hougan commented: "From Bitwise’s beginning in 2017, we’ve sought to give investors easy exposure to crypto’s ground-breaking potential. BITW opened up new possibilities as the first fund to provide a broad, index-based approach to crypto markets, and it remains the leader in its class. We’re excited for the next phase of BITW’s development."
Complementary Move: Ethereum Staking Acquisition
In a parallel strategic step, Bitwise recently completed the acquisition of Attestant Limited, an institutional-grade Ethereum staking provider overseeing $3.7 billion in staked assets. This acquisition positions Bitwise to offer professional non-custodial staking services alongside its existing ETP, hedge fund, private fund, and separately managed account solutions, creating a comprehensive digital asset investment ecosystem.
Industry observers view the BITW ETP filing as a potential catalyst for broader institutional adoption of crypto index products. The NYSE Arca review process typically takes several months, and final approval remains subject to regulatory clearance.