Bitwise Files for 11 New Crypto Strategy ETFs With the SEC

Bitwise Asset Management has taken a significant step to broaden regulated options for cryptocurrency investments. The asset manager filed applications with the U.S. Securities and Exchange Commission (SEC) for 11 new crypto strategy exchange-traded funds (ETFs). 

These exchange-traded funds aim to provide both direct and indirect exposure to cryptocurrencies. Undoubtedly, this move represents a key development in crypto-focused financial products.

Details of the Proposed Bitwise Crypto ETFs

According to the filing, the new ETFs will track a variety of blockchain networks and digital assets. This includes Aave, Ethena (ENA), Canton (CC), NEAR, Hyperliquid (HYPE), Starknet (STRK), Sui, Tron (TRX), Uniswap (UNI), Zcash (ZEC), and Bittensor (TAO). 

Notably, each ETF will invest up to 60% of its assets directly in the underlying crypto token. The rest of the portfolio will go into exchange-traded products (ETPs) that provide extra exposure to the same token. This mixed approach aims to balance direct ownership of cryptocurrencies with regulated investment options. Ultimately, this may help lower operational and custody risks.

The SEC filing also shows that Bitwise’s crypto strategy ETFs may invest in derivatives, such as futures contracts and swap agreements. This filing reflects the growing confidence among asset managers that interest in crypto ETFs beyond just Bitcoin and Ethereum is rising. If approved, the funds could give investors access to altcoins that are hard to hold directly. 

Bitwise Files for ETF Tracking Hyperliquid Token

Similarly, Bitwise filed to launch an ETF tied to the Hyperliquid token in September. As reported by TheCoinRise, the proposed Bitwise Hyperliquid ETF would directly hold Hyperliquid’s native cryptocurrency, HYPE. 

Meanwhile, the filing did not disclose which exchange the ETF would list on, its trading ticker, or the fees Bitwise plans to charge. The asset manager said the fund will track the value of HYPE held by the trust and allow in-kind creation and redemptions. This means shares of the ETF can be exchanged directly for Hyperliquid tokens rather than cash.

SEC Shutdown Opens Door for Faster Crypto ETF Launches

The timing of these developments comes during a government shutdown, the longest in U.S. history. This has left the SEC operating with limited staff. Before the shutdown began, the agency approved new listing standards that could speed up crypto ETF launches once the requirements are met.

Soon after, the SEC issued updated guidance allowing firms to file an S-1 registration statement without a delaying amendment. Without this amendment, an ETF automatically becomes effective after 20 days, provided it meets all listing standards.

It is worth noting that this process lets companies launch crypto ETFs without waiting for the SEC’s direct approval. However, any change to the filing resets the 20-day countdown.