Bitwise Asset Management announced Tuesday that it had presented a statement registration for "the first cryptocurrency publicly offered index exchange-traded fund (ETF)."
The San Francisco-based company already operates "the world's first privately-funded cryptocurrency index, the bottom of the private index Bitwise Hold 10 ", he described. The permanent private placement fund was launched on November 22nd last year and is open only to accredited investors, the company noted:
The new ETF will be called Bitwise Hold 10 Cryptocurrency Index Fund. It aims to track the yields of Bitwise & # 39; s Hold 10 Index, a weighted index based on the market capitalization of the 10 largest cryptocurrencies, rebalanced monthly.
The top five components of the Hold 10 Index at the end of June are 55% BTC, 20% ETH, 9.4% XRP, 6.4% BCH, 2.6% LTC.
"The Hold 10 index captures about 80% of the total market capitalization of the cryptocurrency market", further elaborated the crypto asset manager. The index "uses a 5-year diluted market capitalization and other eligibility criteria designed to meet the challenges of cryptographic space such as the continuous change in supply, liquidity, concentration of trading volume and custody limits. "
Founded in 2017, Bitwise is backed by institutional and individual investors, including Khosla Ventures, General Catalyst, Blockchain Capital, Naval Ravikant, Alison Davis, David Sacks, Elad Gil, Adam Nash, Adam Ludwin, Suna Said and Avichal Garg. .
In its announcement on Tuesday, the company revealed that "A registration statement relating to the shares of the Bitwise Hold 10 Cryptocurrency Index Fund has been filed with the Securities and Exchange Commission (SEC) but has not yet been declared effective. "
Bitwise global research leader Matt Hougan commented:
Our research shows that an index-tr Multiple cryptocurrency basket behaves differently than a single currency. As such, we believe it is necessary to consider the two types of exposure from investors when considering the growing cryptocurrency space. Our opinion is that this new area has many similarities with the introduction of commodity ETFs 10 to 15 years ago.
He noted that "at that time, we saw the launch of commodity-based ETFs that tracked gold, silver, crude oil, and other commodities, as well as ETFs that track diversified baskets on commodity indices. similarities here. "
What do you think of Bitwise's proposed ETF crypto index? Let us know in the comments section below.
Images courtesy of Shutterstock and Bitwise.
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January 14, 2019
January 14, 2019