On Thursday, asset manager Bitwise filed for a multi-cryptocurrency ETF. This move tallies with recent rumors surrounding the possible resignation of SEC Chair Gary Gensler. The filing for the Bitwise 10 Crypto Index Fund (BITW) represents a bold step toward providing retail investors with broader crypto market exposure through a regulated investment vehicle.
Strategic Timing and Market Impact
The proposed ETF would include ten digital assets, likely comprising the largest cryptocurrencies by market capitalization. According to Bitwise CEO Hunter Horsley, ETPs are among the most efficient, convenient, and useful vehicles for providing crypto exposure. The ETP structure comes with several benefits such as greater efficiency and regulatory protections.
In addition, ETP accepts subscriptions continuously at Net Asset Value (NAV), thereby creating an arbitrage mechanism that allows trading of the fund on a secondary market in a way that is closely connected to its NAV.
Also, this development follows Grayscale’s recent efforts to establish a similar ETF, suggesting growing momentum in the institutional crypto investment space.
SEC Leadership Change Could Reshape Crypto ETFs
The timing of Bitwise’s filing gains additional significance amid speculation about SEC Chair Gary Gensler’s potential departure.
“I’ve been proud to serve with my colleagues at the SEC who, day in and day out, work to protect American families on the highways of finance,”—Gensler said.
Meanwhile, Bloomberg ETF strategist Eric Balchunas suggests that a leadership change at the SEC, particularly the possibility of a Trump administration appointee, could lead to a more favorable environment for crypto ETF approvals. If approved, BITW’s conversion to an ETP structure would enhance transparency and efficiency for investors, potentially setting a precedent for future crypto index products in traditional financial markets.
