San Francisco-based crypto asset manager Bitwise Asset Management has reportedly filed a registration statement to the Securities and Exchange Commission for a new publicly offered altcoin index ETF. In a statement, the company explained that the new ETF is going to track returns of Bitwise’s other index of the 10 largest digital currencies, the HOLD 10 index, which is weighed on the basis of the market caps. Both retail, as well as institutional investors, stand to gain from this.
CEO and co-founder of the company Hunter Horsley explained that the index is a very useful and practical tool for investors as it isn’t tied to the current prospects of any one token. What things will look like five or ten years from now is pretty unclear, Horsley stated in an interview. “The HOLD 10 index offers broad exposure, it updates monthly and changes to adapt to the market.”
According to their statement, in order to help resolve issues in the crypto-market, the index makes use of a market cap diluted for 5 years. Issues like unpredictable supplies, liquidity, the concentration of trade, and custody limitations are some of the issues they hope to tackle.
Currently, the HOLD 10 Index boasts of Bitcoin, Bitcoin Cash, XRP, Ether, Litecoin, Dash, Lumens, ZCash, Monero, and Ethereum Classic in its repertoire. The company also provides a fund to accredited investors based on the index, which happens to be one of the first private altcoin index funds.
Approval for the ETF is yet to be announced by the SEC. In 2017, it dismissed an application by crypto-exchange Gemini founders Cameron and Tyler Winklevoss for a new Bitcoin-based investment vehicle. In June, they asked for public opinion on an application created by the CBOE for another Bitcoin-based ETF.
“We expect the staff of the SEC has had ongoing discussions with the investment firms making the crypto filings to date, and we look forward to having our own discussions with the SEC about the nature of our proposed offering,” Global Head of Exchange – Traded Products at Bitwise John Hyland has been reported saying.