XRP in Spotlight as Bitwise Files for 10 Crypto Index ETF with SEC

Bitwise Investment Management has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) for the launch of its 10-Crypto Index Exchange-Traded Fund (ETF). The ETF will track the Bitwise 10 Large Cap Crypto Index and will include major cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana, Cardano, Uniswap, Polkadot, Chainlink, Avalanche, and Bitcoin Cash.

Bitwise’s New ETF Combines BTC, ETH, XRP & Other Altcoins

The proposal, submitted on November 14, 2024, is filed under NYSE Arca Rule 8.800-E, which governs commodity and digital asset-based investment interests. Bitwise seeks to list the ETF on NYSE Arca, with Coinbase Custody acting as the custodian for digital assets and The Bank of New York Mellon handling cash custody, administration, and transfer agency services.

According to the filing, the index will rebalance monthly, aligning with changes in the top 10 large-cap cryptocurrencies. The fund’s investment objective is to track the performance of these assets by market capitalization, with weightings adjusted based on free-float market cap. As of October 31, 2024, Bitcoin and Ethereum dominate the index with respective weightings of 75.1% and 16.5%, followed by smaller allocations for Solana, XRP, Cardano, and others.

Transparency and Compliance

The filing emphasizes the fund’s focus on transparency and regulatory compliance. Bitwise plans to use reference prices from reputable digital asset trading platforms such as Coinbase and Kraken, verified by CF Benchmarks Ltd., a UK-regulated administrator. The fund’s shares will be created and redeemed in cash, minimizing exposure to potential manipulation in digital asset markets.

This development follows the SEC’s recent approval of spot Bitcoin and Ethereum ETFs, which established a precedent for funds holding physical digital assets. Bitwise aims to expand this framework to a diversified basket of cryptocurrencies. The SEC will now evaluate the application, soliciting public comments and determining whether the fund meets regulatory requirements.

If approved, this ETF would mark a significant step toward mainstream adoption of cryptocurrencies, offering investors a regulated and diversified way to gain exposure to the rapidly evolving digital asset market. Earlier, the firm filed for separate spot ETFs for Solana and XRP.