HOLD 10 Cryptocurrency Index Exchange-Traded Fund (ETF) Announces Filing
Bitwise Asset Management has announced the filing of the registration statement for a new fund, the first publicly-offered cryptocurrency index exchange-traded fund (ETF).
Bitwise is the creator of the world's first privately-offered cryptocurrency index fund, the Bitwise HOLD 10 Private Index Fund. Founded in 2017, Bitwise Asset Management is a cryptocurrency asset manager. Bitwise launched the first cryptocurrency index fund, the Bitwise HOLD 10 Private Index Fund, on November 22, 2017.
The company said the new ETF will be called the Bitwise HOLD 10 Cryptocurrency Index Fund. It aims to track the returns of Bitwise's HOLD 10 Index, a market-cap-weighted index of the 10 largest cryptocurrencies, rebalanced monthly.
A registration statement relating to the shares of the Bitwise HOLD 10 Cryptocurrency Index Fund ETF has been filed with the Securities and Exchange Commission (SEC) but has not yet been declared effective.
The HOLD 10 Index captures approximately 80% of the total market capitalization of the cryptocurrency market. It uses a 5-year-diluted market cap and other eligibility criteria meant to address challenges of the crypto space such as continuously changing supply, liquidity, trade volume concentration, and custody limitations.
The shares of the ETF may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.
According to Bitwise Global Head of Exchange-Traded Products John Hyland:
“We are aware that other investment firms have filed for cryptocurrency ETFs under the Securities Act of 1933, and that there continues to be interest in filing under the Investment Company Act of 1940. As best we know, all of these funds plan to offer exposure to a single coin such as bitcoin or ether. That is fine, but our proposed offering is obviously different,”
“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. 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.”