Bitwise Asset Management announced today that NYSE Arca has filed to list the world’s first and largest crypto index fund, the Bitwise 10 Crypto Index Fund (BITW), as an exchange-traded product (ETP).
The filing is the latest step in Bitwise’s ongoing effort to convert the $1.3 billion publicly traded trust to an ETP structure. Shares of BITW are currently quoted on the OTCQX Best Market.
“Bitwise believes that ETPs are among the most efficient, convenient, and useful vehicles for providing crypto exposure,” said Bitwise CEO Hunter Horsley. “We remain committed to converting BITW to an ETP.”
The ETP structure confers many benefits to shareholders, including greater efficiency and regulatory protections. Notably, an ETP accepts subscriptions and redemptions on an ongoing basis at Net Asset Value (NAV), creating an arbitrage mechanism that allows the fund to trade on the secondary market in a way that is more closely linked to its NAV.
“From Bitwise’s beginning in 2017, we’ve sought to give investors easy exposure to crypto’s groundbreaking potential,” said Bitwise Chief Investment Officer Matt Hougan. “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.”
Background and History
The Bitwise 10 Crypto Index Fund launched in November 2017 as the world’s first crypto index fund. For seven years, the fund has offered investors a means of gaining diversified, managed exposure to the market for crypto assets, currently valued at over $3 trillion.1
Since launching the fund as a private placement for accredited investors, Bitwise has worked continuously to broaden access to and strengthen the regulatory protections around BITW, with the ultimate goal of listing the fund as an ETP. Key milestones in this journey include:
- December 2020: Shares of the fund begin trading on the OTCQX Best Market under the ticker BITW, making the Bitwise 10 Crypto Index Fund the first publicly traded crypto index fund.
- April 2021: BITW becomes the first crypto index fund to register as an SEC reporting company, providing additional transparency and clarity for investors.
- November 2024: NYSE Arca files to uplist BITW as an ETP.
Investment Methodology and Current Holdings
The Bitwise 10 Crypto Index Fund holds the 10 largest crypto assets, ranked and weighted by market capitalization. The fund and its underlying index are reconstituted and rebalanced each month to ensure it stays current with the fast-moving crypto market. The underlying index uses proprietary risk screens to exclude assets with certain risks.
As of October 31, 2024, the Fund held the following assets:
- Bitcoin: 75.1%
- Ethereum: 16.5%
- Solana: 4.3%
- XRP: 1.6%
- Cardano: 0.7%
- Avalanche: 0.6%
- Bitcoin Cash: 0.4%
- Chainlink: 0.4%
- Uniswap: 0.3%
- Polkadot: 0.3%
About Bitwise
Bitwise Asset Management is a leading crypto specialist asset manager serving clients in the U.S. and Europe. Thousands of financial advisors, family offices, and institutional investors partner with Bitwise to understand and access the opportunities in crypto. For seven years, Bitwise has established a track record of excellence managing a broad suite of index and active solutions across ETFs, separately managed accounts, private funds, and hedge fund strategies. The company is known for providing unparalleled client support through expert research and commentary, its nationwide client team of crypto specialists, and its deep access to the crypto ecosystem. The Bitwise team of more than 90 professionals combines expertise in technology and asset management with backgrounds including BlackRock, Millennium, ETF.com, Meta, Google, and the U.S. Attorney’s Office. Bitwise is backed by leading institutional investors and has been profiled in Institutional Investor, Barron’s, Bloomberg, and The Wall Street Journal. It has offices in San Francisco, New York, and London. For more information, visit www.bitwiseinvestments.com.
RISKS
An investment in Bitwise 10 Crypto Index Fund (“BITW” or the “Fund”) is considered speculative and involves a high degree of risk. The Fund is not suitable for all investors. An investment involves significant risks due to the nature of the Fund’s investments. An investor may lose all or a substantial part of their investment. The Fund does not represent a complete investment portfolio. There can be no assurance that the investment objectives of the Fund will be achieved.
Trading in crypto assets comes with significant risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks and risk of losing principal or all of your investment. In addition, crypto asset markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing.
Crypto asset trading requires knowledge of crypto asset markets. In attempting to profit through crypto asset trading, you must compete with traders worldwide. You should have appropriate knowledge and experience before engaging in substantial crypto asset trading. Crypto asset trading can lead to large and immediate financial losses. Under certain market conditions, you may find it difficult or impossible to liquidate a position quickly at a reasonable price.
No Advice on Investment; Risk of Loss: Prior to making any investment decision, each investor must undertake its own independent examination and investigation, including the merits and risks involved in an investment, and must base its investment decision—including a determination whether the investment would be a suitable investment for the investor—on such examination and investigation.
IMPORTANT INFORMATION
Shares of the Bitwise 10 Crypto Index Fund are registered with the Securities and Exchange Commission pursuant to Section 12(g) of the Securities and Exchange Act of 1934, as amended, and are quoted on the OTCQX. The shares quoted on OTCQX may not reflect the value of the digital assets held by the Fund, less the Fund’s expenses and other liabilities, and have in the past and may in the future trade at a premium over such value, which at times has been and may in the future be substantial.
This press release is not an offer to sell nor a solicitation of an offer to buy Shares in any Fund. Any offer to sell or solicitation of an offer to buy Shares will be made solely through the Fund’s definitive offering documents, identified as such, in respect of the Fund in compliance with the terms of all applicable securities and other laws. Such definitive offering documents, if any, will describe risks related to an investment in the Fund (including loss of the entire investment) and will qualify in their entirety the information set forth herein. The Shares will be offered and sold under the exemption provided by Section 4(a)(2) of the Securities Act of 1933 and Rule 506 of Regulation D promulgated thereunder and other exemptions of similar import in the laws of the states and jurisdictions where the offering will be made. The offer and sale of Shares have not been registered with or approved or disapproved by the Securities and Exchange Commission (the “SEC”) or the securities commission or regulatory authority of any state or foreign jurisdiction, nor is such registration contemplated.
Crypto assets are digital representations of value that function as a medium of exchange, a unit of account, or a store of value, but they do not have legal tender status. Crypto assets are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not currently backed nor supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional currencies, stocks, or bonds.
The opinions expressed represent an assessment of the market environment at a specific time and are not intended to be a forecast of future events, or a guarantee of future results, and are subject to further discussion, completion and amendment. The information herein is not intended to provide, and should not be relied upon for, accounting, legal or tax advice, or investment recommendations. You should consult your accounting, legal, tax or other advisors about the matters discussed herein.
Foreside Fund Services, LLC provides marketing review services. Foreside is not affiliated with the other entities named in the communication.
1 Source: CoinMarketCap, November 14, 2024.
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