Bitwise Files New SEC Application for Bitwise Crypto Innovators ETF

Bitwise Asset Management has filed with the U.S. Securities and Exchange Commission (SEC) заявку to launch the Bitwise Crypto Innovators ETF. It is expected to track the performance of startups delivering innovations in the cryptocurrency space.

The components of the ETF are part of the Bitwise Crypto Innovators Index, created by Bitwise Index Services.

The company defines ‘crypto innovators’ as firms that ‘service and transact in digital assets and work with distributed ledger technology’.

The list will include trading platforms, custodians and wallet developers, and other providers of financial services related to the blockchain industry. Miners and manufacturers of equipment for mining cryptocurrencies and their issuers will also be included.

The Bitwise Crypto Innovators Index will be split into two components. The first (70%) will consist of shares of companies for which 75% or more of revenue comes from cryptocurrency operations or 75% or more of their own capital consists of digital assets. Such firms must have a market capitalization exceeding $100 million.

The second part of the index (30%) will consist of shares of larger companies. The Bitwise Investment Committee will designate them as ‘crypto innovators’ on the basis of a ‘special business initiative’ in this space. Firms in this category must have a market capitalization of at least $10 billion.

The filing does not anticipate that Bitwise Crypto Innovators will invest directly in cryptocurrencies or through derivatives, nor in ICOs.

What is a cryptocurrency ETF?

Earlier, the company announced plans to list a bitcoin fund on the over-the-counter market, which would place it alongside GBTC from Grayscale Investments.

In December, Bitwise Asset Management conducted the listing of the Bitwise 10 Crypto index cryptocurrency fund on the OTCQX over-the-counter market. By the end of 2021, trading turnover for the instrument surpassed that of Grayscale’s Ethereum fund.

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