Bitwise Requests Approval for 11 Crypto ETFs with the SEC

Bitwise Files for 11 Crypto ETFs Focused on Altcoins

Bitwise, a major player in the crypto fund management space, has submitted a request to the U.S. Securities and Exchange Commission (SEC) to launch 11 new exchange-traded funds (ETFs) focusing on cryptocurrencies, expanding its footprint in the altcoin market. The proposed funds aim to provide selective exposure to assets such as Aave (AAVE), Uniswap (UNI), Zcash (ZEC), Bittensor (TAO), Sui (SUI), and Near (NEAR), offering investors a regulated way to access tokens that have primarily traded on crypto exchanges until now.

According to the documentation, each product is designed as a "Strategy ETF" rather than a simple spot vehicle, following a rule-based plan to gain exposure to the underlying assets. In general terms, the funds will combine direct holdings of cryptocurrencies with positions in exchange-traded products (ETPs) that also relate to these assets and may utilize derivatives to adjust exposure.

The funds will invest up to 60% of their assets in tokens and at least 40% in securities issued by one or more ETPs that invest directly in or provide exposure to the tokens. This structural difference sets these ETFs apart from existing Bitwise offerings, which primarily consist of diversified baskets of crypto stocks.

Bitwise already maintains a fairly comprehensive range of ETF products in the U.S., including the Bitwise Bitcoin ETF, Bitwise Ethereum ETF, Bitwise Solana Staking ETF, and Bitwise XRP ETF, which hold the respective assets directly. The firm also offers ETFs that include crypto-listed companies and an ETF based on an index with the largest digital assets.

If approved, these unique token strategy ETFs would provide institutions and advisors with a native ETF way to express their views on tokens like TAO or SUI without holding them directly.

This move comes amid a broader wave of activity in the ETF space, including Grayscale's recent application to convert its Bittensor trust into a spot ETF on NYSE Arca. Over the past few months, issuers such as Bitwise, VanEck, and 21Shares have begun to develop products linked to altcoins such as Solana, XRP, Dogecoin, and Avalanche.