2025-03663NoticeWallet

SEC Ponders Crypto Index Fund: Will Bitcoin ETFs Get a New Cousin?

Published Date: 3/7/2025

Notice

Summary

The SEC is deciding whether to let NYSE Arca list and trade shares of the Bitwise 10 Crypto Index Fund, a new fund tied to cryptocurrencies. This could open up fresh investment options for traders interested in digital assets, but the SEC is still reviewing the risks before giving the green light. The decision will affect investors and the exchange, with a final call expected soon.

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

SEC Reviewing NYSE Arca Crypto ETF Listing

On March 3, 2025 the SEC instituted proceedings to decide whether to approve or disapprove NYSE Arca’s proposed rule change to list and trade shares of the Bitwise 10 Crypto Index Fund. If approved, NYSE Arca would be allowed to list and trade Shares of a trust that tracks the Bitwise 10 Large Cap Crypto Index (ten digital assets).

Fund Concentrated in Top Ten Crypto Assets

The Trust will hold the ten digital assets in the Bitwise 10 Large Cap Crypto Index and currently holds 75.10% Bitcoin (BTC), 16.5% Ethereum (ETH), 4.3% Solana (SOL), 1.5% XRP (XRP), 0.70% Cardano (ADA), 0.60% Avalanche (AVAX), 0.40% Chainlink (LINK), 0.40% Bitcoin Cash (BCH), 0.30% Polkadot (DOT) and 0.30% Uniswap (UNI). The Trust will rebalance monthly to match the Index.

Daily NAV Using CF Benchmarks and Selected Exchanges

The Trust’s net asset value (NAV) will be calculated each Exchange trading day as of 4:00 p.m. ET using Reference Prices published by CF Benchmarks Ltd. Those Reference Prices aggregate trade flow during a 3:00–4:00 p.m. ET window from digital asset platforms including Bitstamp, Coinbase, Gemini, itBit, LMAX, and Kraken.

Shares Created or Redeemed Only in Large Cash Units

The Trust creates and redeems Shares only in one or more Creation Units, which will initially consist of at least 10,000 Shares (the Exchange said this may change). Creations and redemptions are conducted for cash, with authorized participants delivering or receiving cash when exchanging Shares.

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Key Dates

Effective Date
Published Date
3/3/2025
3/7/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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