Bitwise Seeks to Convert $1.3 Billion Crypto Trust into ETP on NYSE Arca

Bitwise Asset Management is pushing forward with plans to convert its $1.3 billion Bitwise 10 Crypto Index Fund (BITW) into an Exchange-Traded Product (ETP), filing with NYSE Arca to list the fund and further solidify its position in the growing crypto investment space.

Key Developments and Strategic Goals

• Filing with NYSE Arca: The NYSE Group‘s NYSE Arca has officially submitted a filing to list BITW as an ETP. This marks a significant step for Bitwise, as the company seeks to transition its Bitwise 10 Crypto Index Fund into a more accessible investment product for both institutional and retail investors.
• ETP Benefits: The conversion to an ETP is expected to bring several advantages, including:
  • Ongoing subscriptions and redemptions at Net Asset Value (NAV), which would help ensure that the secondary market prices of BITW align more closely with its underlying value.
  • A more efficient, convenient, and useful way to provide exposure to cryptocurrencies. According to Bitwise CEO Hunter Horsley, the firm remains committed to making BITW an ETP to enhance access to the digital asset market.

BITW Fund Overview

• Launched in 2017, the Bitwise 10 Crypto Index Fund (BITW) offers investors exposure to the 10 largest cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), weighted by market capitalization. As of October 31, the fund’s largest holdings were:
  • Bitcoin: 75.1%
  • Ethereum: 16.5%

This index fund aims to give investors a diversified way to gain exposure to the overall crypto market, making it an attractive option for those looking to invest in multiple assets without buying individual cryptocurrencies.

Strategic Focus on Broader Bitcoin Access

• Targeting Institutional and Retail Investors: According to Matt Hougan, Bitwise’s Chief Investment Officer, the goal of converting the BITW fund to an ETP is to expand access to Bitcoin and other major cryptocurrencies for both institutional and retail investors. Bitwise views ETPs as one of the most efficient methods for providing exposure to crypto markets, noting that the fund’s index-based approach opens up new possibilities for investors seeking a diversified exposure to crypto.
• Recent Bitcoin Bullish Sentiment: The move to convert BITW to an ETP comes shortly after Matt Hougan highlighted Bitcoin’s bullish trajectory, suggesting that Bitcoin is on track to surpass $100,000 per BTC. This positive outlook is likely fueling further demand for broader crypto investment products like ETPs.

What’s Next for Bitwise and BITW

• Enhanced Liquidity and Market Access: The transition to an ETP is expected to increase liquidity and market access for BITW, providing a more efficient mechanism for investors to enter and exit positions. This could make BITW an even more attractive option for institutional investors looking to integrate crypto exposure into their portfolios.
• Broader Crypto Market Impact: Bitwise’s filing represents a broader trend in the crypto industry, where investment vehicles like ETPs, ETFs, and trusts are becoming increasingly popular among traditional financial markets. These products are seen as ways to bridge the gap between traditional finance and the rapidly growing crypto sector.

Bitwise’s move to convert its $1.3 billion BITW fund into an ETP on NYSE Arca is an important development in the ongoing institutionalization of the crypto market. By providing a more accessible and efficient means for investors to gain exposure to the top cryptocurrencies, Bitwise is positioning itself at the forefront of the growing crypto asset management space. With Bitcoin’s positive market sentiment and increasing demand for diversified crypto investment products, this filing could signal the beginning of an exciting new chapter for the company and for the broader digital asset market.