Key Takeaways
- Bitwise’s Bitcoin and Ethereum ETFs have pulled over $2.5 billion in cumulative net inflows.
- SEC Chair Gary Gensler has hinted at an early departure from his role.
- The firm has acquired an Ethereum staking firm for an undisclosed amount.
Bitwise has applied to convert its $1.3 billion crypto index fund into an exchange-traded product (ETP).
The news arrives as rumors swirl around the resignation of U.S. Securities and Exchange Commission (SEC) chair Gary Gensler.
Bitwise Crypto Index
The New York Stock Exchange (NYSE) Arca has filed a 19b-4 form to see the $1.28 billion Bitwise 10 Crypto Index Fund (BITW) converted into an ETP.
As per the announcement from Bitwise, the firm views the conversion as an “efficient, convenient, and useful” investment vehicle.
The index is comprised of ten cryptos: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), Cardano (ADA), Avalanche (AVAX), Bitcoin Cash (BCH), Chainlink (LINK), Uniswap (UNI), and Polkadot (DOT).
As of Oct. 31, 2024, Bitcoin bears the biggest weight, comprising 75.13% of the index. It is followed by ETH (16.46%), SOL (4.29%), and XRP (1.55%). All others represent less than 1% of the index weighting.
With the hawkish and litigious SEC chairman, Gary Gensler, rumored to be resigning before getting the boot from Trump’s incoming administration, it would appear that Bitwise is anticipating pro-crypto reforms in the near future.
It goes without saying that Bitwise is a major player in the Bitcoin and Ethereum ETF market, as its spot BTC and ETH funds command over $4 billion in combined assets.
Its applications to create spot XRP ETFs also put it at the forefront of institutional adoption
Attestant Acquisition
The filing coincides with Bitwise’s purchase of London-based crypto firm Attestant, which offers institutional-grade Ethereum staking services.
In a Nov. 13 press release, Bitwise explained that Attestant, which already commands some $3.7 billion in staked assets, will allow Bitwise to expand its offerings and services for institutional investors.
More specifically, this will see Bitwise’s new Onchain Solutions group (Bitwise OS) improve ETH staking, build staking services for “select additional protocols,” and contribute to the open-source community.
Staking services via Bitwise OS will require a minimum stake of $10 million.
Ethereum ETF Staking?
Speculatively, this move could also be in anticipation of the incoming Trump administration. Pertinent to Bitwise’s acquisition, this could see ETH staking finally enabled on Ethereum ETFs.
This option was seemingly out of the question for ETH ETFs under Gensler’s SEC tenure, as the regulator viewed staking as constituting a security offering.
With a major shakeup looming over the U.S. government, firms may be positioning themselves for pro-crypto reforms.
Bitwise has also recently announced the world’s first Aptos (APTS) staking ETP in Switzerland, which will be listed on the SIX Swiss Exchange on Nov. 19, 2024.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
