Asset Manager Bitwise Files for a Top-10 Cryptocurrency ETF

Institutional solutions to cryptocurrency investing are on the rise.

On July 24, 2018, Bitwise filed an application for a cryptocurrency-based exchange-traded fund with regulatory authorities in the U.S.Bitwise HOLD 10 Cryptocurrency Index Fund.

Bitwise filed an application for a top-10 cryptocurrency ETF with the U.S. Securities and Exchange Commission, according to a press release published July 24, 2018.

Founded in 2017, Bitwise Asset Management is responsible for the world's first cryptocurrency index fund.

The Bitwise HOLD 10 Private Index Fund is a market-cap-weighted index tracking the 10 largest cryptocurrencies adjusted on a monthly basis.

The Bitwise cryptocurrency ETF, entitled Bitwise HOLD 10 Cryptocurrency Index Fund, will track the same index and capture nearly 80% of the total cryptocurrency market capitalization.

With increasing regulatory scrutiny and the maturation of the cryptocurrency sector, lawmakers are slowly legitimizing cryptocurrency-based financial products.

"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."

In the face of an adapting cryptocurrency market, the U.S. SEC opened up to public comment for the Bitcoin ETF and cryptocurrency ETF proposals currently under review.

If approved, the Bitwise HOLD 10 Cryptocurrency Index Fund could catalyze an influx of institutional capital into the cryptocurrency sector and mark the second regulated digital asset product to list on public markets.