Cryptocurrency index fund Bitwise has announced it has filed an application to the U.S. Securities and Exchange Commission (SEC) to list crypto exchange traded funds (ETF’s) unde the product name of: “Bitwise HOLD 10 Cryptocurrency Index Fund”. In accordance with the name, the fund will be tied to top ten cryptocurrencies by market capitalization.
Company adds that while the fund will capture around 80% of total market capitalization, it will also utilize a 5-year-diluted market cap. This will mitigate possible volatility of the market in the forms of continuously changing supply, liquidity and other factors.
Previously Bitwise launched a HOLD 10 index for private investors late last year, which currently follows the same index as the fund put up for SEC’s approval. It is unclear when and if the application to the SEC will be approved.
With this move, Bitwise becomes one of the few institution to file an application to list crypto-backed ETF’s. Both SolidX and Gemini saw they applications rejected while SEC also delayed the call on the latest one by CBOE, by two further months.
WHY IS IT IMPORTANT?
SEC has not approved a cryptocurrency-backed ETF to date, and following a delay in making a call on a similar application from CBOE, a positive decision is now not a certainty.
Cryptocurrency community and investors are eagerly awaiting the arrival of crypto-backed ETF’s. As revealed by SEC when it disclosed results of a request for comment which was 97% positive.