While the cryptocurrency market doesn’t yet have a comprehensive index like the Dow Jones or S&P 500, Bitwise is one step closer to filling this void.
The company’s new exchange-traded product, Bitwise 10 Crypto Index ETF (BITW), has begun trading, offering individual investors and financial advisors access to the 10 largest crypto assets in a single product.
BITW’s portfolio includes the following digital assets: Bitcoin, Ethereum, XRP, Solana, Chainlink, Litecoin, Cardano, Avalanche, Sui, and Polkadot. Bitwise CEO and co-founder Hunter Horsley told CNBC that this conversion makes the company the first to include altcoins like Cardano, Avalanche, Sui, and Polkadot, which don’t currently have spot ETFs, in an ETF from a major asset manager.
“This step significantly broadens the investor base that can access various crypto assets,” Horsley said. “This is particularly important for assets without a spot ETF.” According to the CEO, this ETF also provides significant accessibility for smaller investors who invest through individual retirement accounts (IRAs) or pension funds and are only able to access ETFs.
BITW, previously an index fund containing the same assets, has been converted to an ETF and is now listed on the stock exchange with $1.5 billion in assets under management. The ETF structure provides additional benefits to investors by offering greater trading flexibility, tax advantages, and lower costs, along with broader trading permissions.
This development follows an expanded wave of ETFs that followed the U.S. Securities and Exchange Commission (SEC) approval of spot Bitcoin ETFs in January 2024. Since then, asset managers have sought approval for a wider range of ETFs, from altcoins like Sui and Aptos to Trump-themed tokens and memecoins like Dogecoin.
However, as the market matures, crypto assets are beginning to take on their own dynamics, suggesting that broad-based products like BITW could offer a diversification tool similar to the S&P 500 in the equity market. Horsley said, “Many investors following Bitcoin ETFs are looking for a more comprehensive digital asset solution without having to choose specific assets. BITW is ideally timed for this.”
The fund’s exposure to smaller altcoins is limited. 90% of BITW’s assets are allocated to assets like Bitcoin, Ethereum, Solana, and XRP, which already hold individual ETFs. The combined holdings of all other tokens are capped at 10%. The ETF will rebalance monthly, a more frequent rebalancing cycle than the three- or six-month cycles of most ETFs.
*This is not investment advice.