Brad Garlinghouse, the CEO of Ripple, has proposed to the NYSE the listing of the Bitwise 10 Crypto Index Fund (BITW) as an Exchange Traded Product (ETP). In a lighthearted note, he remarked on the response he received when presenting this to Arca.
Yesterday, Bitwise announced that its filing with the US SEC through NYSE Arca is aimed at listing BITW as an ETP. The firm characterized this filing as an important step towards transforming the world’s first and largest crypto index fund into an ETP format.
Overview of BITW
Launched in 2017, the Bitwise 10 Crypto Index Fund encompasses the top 10 cryptocurrencies ranked by market capitalization. BITW has successfully evolved into a fund with a market value of $1.24 billion, with Bitcoin, Ethereum, Solana, and XRP forming 74.8%, 16.2%, 4.4%, and 1.9% of the holdings, respectively.
The fund also includes other cryptocurrencies like Cardano, Avalanche, Bitcoin Cash, Chainlink, Uniswap, and Polkadot, with smaller proportions ranging from 0.3% to 0.9%.
Bitwise has a strategy of monthly rebalancing and updating the fund and its underlying index to reflect current market conditions. Currently, the fund has a market valuation of $1.24 billion and a share price of $48.35.
Since its launch in 2017, the Bitwise 10 Crypto Index Fund has seen significant success. Three years after its inception, the fund’s shares were listed on the OTCQX Best Market.
In April 2021, it became the first crypto index fund to register as a SEC reporting entity, enhancing its transparency for investors.
Currently, NYSE Arca is seeking the SEC’s approval to define the fund as an exchange-traded product. This approval would allow BITW to trade near its net asset value (NAV), offering investors regulatory security and enhanced efficiency.
CEO Garlinghouse’s Enthusiasm
This initiative has generated buzz within the XRP community, and Garlinghouse shared his enthusiasm for the development.
He humorously referred to the fund’s four largest features—BTC, ETH, SOL, and XRP—as “alphabet soup,” showcasing his excitement about the increasing interest from institutional investors in cryptocurrencies, particularly XRP.
Institutional Interest in XRP On the Rise
XRP is gaining traction among institutional investors, with leading crypto firms actively pursuing the introduction of ETFs linked to the digital asset. Notable companies like Grayscale Investments, Canary Capital, 21Shares, and Bitwise have filed for various spot-based XRP ETFs.
On October 1, Bitwise initially submitted an application to create an XRP ETF, and shortly thereafter, Canary Capital also filed its own application with the SEC. Grayscale Investments is taking steps to transform a multi-fund ETF that features five cryptocurrencies, including XRP.
Additionally, 21Shares is the fourth entity aiming for SEC approval for an XRP ETF. NYSE Arca has proposed the listing of the Bitwise Multi-Fund, which includes XRP among other assets, as an ETP.
Disclaimer: This content is for informative purposes only and should not be construed as financial advice. The views presented in this article are solely those of the author and do not necessarily represent the opinions of The Crypto Basic. We recommend conducting comprehensive research before making any investment decisions. The Crypto Basic takes no responsibility for any financial losses incurred.
