TL;DR
- Bitwise filed eleven single-token crypto ETF purposes with the SEC, targeted on altcoins and excluding Bitcoin and Ethereum.
- The funds goal tokens comparable to Aave, Uniswap, Zcash, Bittensor, Sui, and Close to, providing direct publicity to a single altcoin.
- Every ETF will function as a Technique ETF, with as much as 60% invested within the token itself and at the least 40% allotted to associated ETPs.
Bitwise submitted eleven purposes to the SEC to launch single-token crypto ETFs, marking some of the aggressive choices seen to date within the regulated altcoin market. The proposal excludes Bitcoin and Ethereum. The funds will deal with belongings that stay exterior the scope of conventional spot ETFs however proceed to draw sturdy demand in crypto markets.
The merchandise goal tokens comparable to Aave, Uniswap, Zcash, Bittensor, Sui, and Close to, amongst others. Every fund concentrates on a single asset and removes inner diversification. The objective is to offer direct and particular publicity to an altcoin by means of a conventional brokerage account, with out going by means of a crypto change.
How Will Bitwise’s New ETFs Work?
It’s value noting that Bitwise didn’t suggest pure spot ETFs. Every fund will function as a Technique ETF underneath a rules-based framework. As much as 60% of the capital will probably be invested instantly within the corresponding token. No less than 40% will probably be allotted to securities issued by exchange-traded merchandise that reference the identical asset. The construction will even permit the usage of derivatives to fine-tune publicity and handle positioning.
This format serves a twin goal. On one hand, it expands operational flexibility relative to the regulatory constraints that also weigh on spot altcoin ETFs. On the opposite facet, it permits the identical structure to be replicated throughout a number of belongings with out redesigning every product from scratch.
Pushing Regulatory Boundaries
This new wave of merchandise would add to Bitwise’s current lineup of spot ETFs tied to Bitcoin, Ethereum, Solana, and XRP, in addition to crypto-related fairness funds, index merchandise, and techniques based mostly on CME-listed futures. Bitwise would introduce a distinct danger profile: concentrated publicity, larger potential volatility, and a direct hyperlink to particular niches comparable to DeFi, synthetic intelligence, and base-layer blockchain ecosystems.
In latest weeks, asset managers comparable to Grayscale, VanEck, and 21Shares have filed or launched autos tied to particular person altcoins and thematic markets. Grayscale even utilized to transform its Bittensor belief right into a spot ETF. Not like these one-off instances, Bitwise opted for scale and a repeatable mannequin.
The purposes have been filed immediately. Tickers and charges haven’t but been disclosed. The market is now ready for the SEC’s response to evaluate how far regulatory openness towards altcoins might lengthen. If the plan receives approval, Bitwise would supply systematic and controlled entry to a good portion of the crypto market.
