The firm has stated that its ETF proposition will allow the tracking of returns based on its HOLD 10 Index that “captures approximately 80 [percent] of the total market capitalization of the cryptocurrency market”.
The fund which will be named the Bitwise HOLD 10 Cryptocurrency Index Fund ETF would employ “a 5-year-diluted market cap and other eligibility criteria meant to address challenges of the crypto space such as continuously changing supply, liquidity, trade volume concentration, and custody limitations.”
Bitwise has publicized that it has filed a registration statement with the US Securities and Exchange Commission (SEC), but for the time being, no approval has been given.
John Hyland, Bitwise’s Global Head of Exchange-Traded Products said with regards to the fund that:
“We are aware that other investment firms have filed for cryptocurrency ETFs under the Securities Act of 1933, and that there continues to be interest in filing under the Investment Company Act of 1940. As best we know, all of these funds plan to offer exposure to a single coin such as bitcoin or ether. That is fine, but our proposed offering is obviously different”.
Hyland continued with the following:
“We know that the current crypto ETF filings have generated a great deal of discussion and analysis within the SEC about this emerging asset class, and the SEC and its staff, to their credit, have asked for public comment on a wide range of issues relating to these products. We expect the staff of the SEC has had ongoing discussions with the investment firms making the crypto filings to date, and we look forward to having our own discussions with the SEC about the nature of our proposed offering.”
In recent events, the SEC announced its attempt to delay its verdict on several ETFs proposed by Direxion until September this year.