The new ETF will be known as the Bitwise HOLD 10 Cryptocurrency Index Fund and a registration statement application identifying with the offers of the Bitwise HOLD 10 Cryptocurrency Index Fund ETF has been filed with the US Securities and Exchange Commission (SEC) yet has not yet been proclaimed effectively. The ETF aims to track the returns of Bitwise’s HOLD 10 Index, a market-cap-weighted index of the 10 largest cryptocurrencies, rebalanced monthly. Currently the index is composed of BTC (58.7%), ETH (17.7%), XRP (7.7%), BCH (6.1%), XLM (3.4%), LTC (2.3%), ZEC (1.1%), XMR (1.0%), ETC (0.9%).
An ETF or the exchange-traded fund is a market security that tracks a group of assets and is traded like stocks on an exchange. While other 14 applications to SEC have been for filed for pure vanilla Bitcoin-only ETFs, as per CNBC, Bitwise is the main firm to apply for an ETF that would track numerous digital assets.
Bitwise’s Global Head of Research Matt Hougan was cited stating on that announcement that, “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. Our view is that this new area has many similarities to the introduction 10 to 15 years ago of commodity ETFs.”
His comments continued saying that “at that time, we saw the launch of single-commodity ETFs tracking gold, silver, crude oil, and other commodities, as well as ETFs tracking diversified commodity index baskets. We see a lot of similarities here.”
Having its own crypto index gives Bitwise the favorable position as far as some worry the SEC has raised to preferences of pricing of ETF and crypto risk mitigation as Bitwise would as of now be doing likewise for index investments and funds.
Bitwise Asset Management works by means of its two subsidiaries Bitwise Index Services, LLC and Bitwise Investment Advisors, LLC. Bitwise Index Services develops digital currency indexes and conducts research about in the zone of digital currency investing while Bitwise Investment Advisors, LLC sponsors U.S. and, non-U.S. private funds that invest into digital currencies.
Bitwise has a strong management group which joins its cutting-edge software mastery with many years of asset management experience – originating from firms including Facebook, Wealthfront, BlackRock, NYLife Investments, IndexIQ, US Commodity Funds, Goldman Sachs, JPMorgan, and ETF.com
Established in 2017, Bitwise Asset Management is a digital currency asset manager. Bitwise launched the principal digital currency index fund, the Bitwise HOLD 10 Private Index Fund, on November 22, 2017. is backed by leading institutional and individual investors, including,
Khosla Ventures, General Catalyst, Blockchain Capital, Naval Ravikant, Alison Davis, David Sacks, Elad Gil, Adam Nash, Adam Ludwin, Suna Said, and Avichal Garg.
The firm is a partner to individuals, financial advisors, family offices, investment managers, and institutions in navigating cryptocurrency.