Bitwise launches ETF based on crypto-company stocks

On the New York Stock Exchange, under the ticker BITQ, the Bitwise Crypto Industry Innovators ETF began trading, based on the shares of 30 publicly listed cryptocurrency-industry companies.

Announcing today’s launch of the Bitwise Crypto Industry Innovators ETF (NYSE: $BITQ)! $BITQ holds public companies backing bitcoin and crypto innovation. Available in brokerages now! (BITQ ETF Risk Disclosure: https://t.co/k76Eg2q5GM) pic.twitter.com/jUZHxF4UFz

— Bitwise (@BitwiseInvest) May 12, 2021

According to Bitwise Asset Management, the ETF tracks the Bitwise Crypto Industry Innovators 30 index, which includes firms that engage in real material activity in the sector.

Also in the index are companies with on-balance-sheet liquid crypto assets totaling at least $100 million.

In most cases these are firms that derive at least 75% of their revenue from direct servicing of the crypto market or the share of digital currencies in their net assets exceeds 75%. The index is updated quarterly.

“Publicly, the biggest innovators in the industry were private enterprises, but the situation is changing quickly. Today the number of public companies benefiting from cryptocurrency is growing,” said Bitwise’s Chief Investment Officer Matt Hogan.

The index takes into account the “unique features of the cryptocurrency market,” the statement says. For example, there is a ‘fast-entry’ option that allows adding 30 new IPOs and direct listings into the Bitwise Crypto Industry Innovators 30 within a day of their debut.

This happened with Coinbase, which on April 14 became public, and the next day entered the index with a weight of 10%, Bitwise noted.

The company filed the application with the U.S. Securities and Exchange Commission in February.

Earlier, the financial holding JPMorgan also decided to launch an investment product based on cryptocurrency company shares.

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