Asset manager Bitwise has revealed plans to convert its $1.3 billion crypto index funds to a crypto exchange-traded product (ETP), allowing more investors to gain crypto exposure by purchasing products that closely track the price of selected cryptocurrencies.
Bitwise’s BITW As An ETP
According to Bitwise, NYSE Arca, the top U.S. exchange for listing and trading ETFs, has filed to list the Bitwise 10 Crypto Index Fund (BITW) as an ETP. BITW is the world’s first and largest crypto index fund.
“Bitwise believes that ETPs are among the most efficient, convenient, and useful vehicles for providing crypto exposure. We remain committed to converting BITW to an ETP,” said Hunter Horsley, CEO of Bitwise.
Significantly, the ETP structure is designed to offer many benefits to BITW shareholders, including robust regulatory protections and enhanced efficiency to boost asset security.
Additionally, the ETPs allow for continuous subscriptions and redemptions at Net Asset Value (NAV), allowing traders to profit by buying/selling. This will ensure that the products trade at a fair market price, closely aligning with the value of the underlying crypto asset.
Further, Bitwise Chief Investment Officer (CIO) Matt Hougan has expressed optimism about the firm’s latest move, a significant step toward crypto asset investment and enlightenment for institutional and individual investors. He said:
“From Bitwise’s beginning in 2017, we’ve sought to give investors easy exposure to crypto’s groundbreaking potential. BITW opened up new possibilities as the first fund to provide a broad, index-based approach to crypto markets, and it remains the leader in its class. We’re excited for the next phase of BITW’s development.”
Bitwise ETF Success
Birwise has taken different steps into the American crypto ETF market by launching its Bitcoin ETF, BITB, and Ether ETF, ETHW, following government approvals. Despite wavering market conditions, both funds have recorded a group inflow of over $2.6 billion.
The asset manager has also made waves in the European ETF market by acquiring ETC Group, a renowned physical crypto ETP issuing company in London.
Meanwhile, Bitwise has filed for a spot XRP ETF and is awaiting a reply from the U.S. Securities and Exchange Commission (SEC).
