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Investment Startup Bitwise Proposes ETF for Top 10 Cryptos
Crypto investment startup Bitwise announced it filed to offer a cryptocurrency exchange-traded fund (ETF) Tuesday.
By Nikhilesh De
Updated Sep 13, 2021, 8:12 a.m. Published Jul 24, 2018, 6:01 p.m.
Crypto investment startup Bitwise is seeking regulators' permission to offer an exchange-traded fund (ETF) tied to the top 10 cryptocurrencies.
The Bitwise HOLD 10 Cryptocurrency Index Fund ETF would track the returns on the startup's HOLD 10 Index. That index is the basis for a passive investment fund which itself invests in the top 10 cryptocurrencies by market capitalization. This fund "captures approximately 80 [percent] of the total market capitalization of the cryptocurrency market," the company said Tuesday.
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According to a press release, the ETF proposal addresses issues surrounding supply, liquidity, trade volume and custody, which are areas the SEC has expressed concern about in the past.
The proposal, filed with the SEC, differs from other ETF applications under the agency's review in that it lists multiple cryptocurrencies as part of the fund, and not just bitcoin.
The news comes just hours after the regulator announced it was postponing a decision on five other proposed ETFs. Those funds were proposed by Direxion Investments, which has withdrawn similar proposals in the past at the SEC's direction.
At the same time, there is an effort to encourage the SEC to approve another ETF proposal, offered by VanEck and SolidX. The SEC is taking comments on this proposal, and may offer a decision as soon as next month if it does not choose to delay it as well.
Cryptocurrencies' chart image via Worawee Meepian / Shutterstock
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Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
Що варто знати:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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