XRP in Spotlight as Bitwise Files for 10 Crypto Index ETF with SEC
Big news in the world of cryptocurrency! Bitwise Investment Management has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) for a new 10-Crypto Index Exchange-Traded Fund (ETF). This ETF will track the Bitwise 10 Large Cap Crypto Index, including major players like Bitcoin, Ethereum, XRP, Solana, Cardano, Uniswap, Polkadot, Chainlink, Avalanche, and Bitcoin Cash.
The proposal, dated November 14, 2024, is filed under NYSE Arca Rule 8.800-E, which deals with commodity and digital asset-based investments. If approved, the ETF will be listed on NYSE Arca, with Coinbase Custody as the custodian for digital assets and The Bank of New York Mellon handling cash custody, administration, and transfer agency services.
The index will undergo monthly rebalancing to reflect changes in the top 10 large-cap cryptocurrencies. As of October 31, 2024, Bitcoin and Ethereum dominate the index, with significant weightings, while smaller allocations are made for Solana, XRP, Cardano, and others.
Bitwise aims to prioritize transparency and regulatory compliance in this venture. They plan to use reference prices from reputable digital asset trading platforms like Coinbase and Kraken, verified by CF Benchmarks Ltd., a UK-regulated administrator. The fund’s shares will be created and redeemed in cash to minimize exposure to potential market manipulation.
This move follows the recent approval of spot Bitcoin and Ethereum ETFs by the SEC, setting the stage for funds holding physical digital assets. Bitwise hopes to expand the framework to cover a diverse range of cryptocurrencies. The SEC will now review the application, seeking public comments to ensure regulatory compliance.
If successful, this ETF could be a game-changer for cryptocurrency adoption, offering investors a regulated and diverse way to gain exposure to the ever-changing digital asset market. Bitwise has also filed separate applications for spot ETFs for Solana and XRP, showing a strong commitment to expanding the world of cryptocurrency investment.
