Bitwise Asset Management has filed a proposal with the United States Securities and Exchange Commission (SEC) to launch an exchange traded fund (ETF) called the Bitwise Hold 10 Cryptocurrency Index Fund. This ETF will track the Bitwise Hold 10 Index, which is a basket of the top ten cryptocurrencies by market cap weighted proportional to their market cap. This is the first ETF proposal that combines multiple cryptocurrencies.

The Bitwise Hold 10 Index will be re-balanced every month, dominated by Bitcoin since that is the nature of the market, and the cryptocurrencies in the index constitute roughly 80% of the total crypto market cap. Currently the weighting is 59.2% Bitcoin, 17.6% Ethereum, 7.6% Ripple, 6.1% Bitcoin Cash, 2.9% Stellar, 2.4% Litecoin, 1.1% Zcash, 1.1% Dash, 1.0% Monero, and 0.8% Ethereum Classic.

Just because the proposal for the Bitwise crypto ETF has been submitted doesn’t mean it will be approved anytime soon, if at all. It usually takes many months before ETFs are approved or denied by the SEC. For example, the Direxion Bitcoin ETFs proposal was submitted seven months ago and is still waiting on a decision. Many Bitcoin ETFs in the past have been shot down by the SEC.

Decisions for both the VanEck SolidX Bitcoin ETF which tracks actual Bitcoins, and the Direxion Bitcoin ETFs which tracks Bitcoin futures on CME and CBOE, will be coming out in the next couple of months. The outcome of the SEC decisions on these ETFs will provide a good idea about the likelihood of the Bitwise ETF having a chance of being approved.

The VanEck SolidX Bitcoin ETF has received very positive comments from the public and appears to have the best chance out of any proposed crypto ETF. The Bitwise crypto ETF is more complex since it depends on ten different cryptos and tracks an index instead of using actual cryptocurrency, which makes it at risk of defaulting in the event of extreme market volatility.

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Image Courtesy: Pixabay
Comments are closed.

Check Also

New Anti-Encryption Bill Would Make Cryptocurrency Illegal in the United States If Passed, Aside From Destroying Privacy and Freedom

The Lawful Access To Encrypted Data (LEAD) Act, if passed, threatens to make cryptocurrenc…