Bitwise Files for 11 Altcoin ETFs with SEC

Digital asset manager Bitwise Asset Management filed registration statements with the U.S. Securities and Exchange Commission on December 30 for 11 new exchange-traded funds designed to provide investors with targeted exposure to a range of altcoins. The proposed ETFs, which would trade on the NYSE Arca if approved, focus on blockchain protocols spanning decentralized finance, privacy networks, and layer-1 ecosystems.

Each fund follows a strategy-based structure, allocating up to 60 percent of assets directly to the underlying cryptocurrency token and at least 40 percent to European exchange-traded products, derivatives, or other instruments that track the token's performance. Under normal conditions, the funds would maintain at least 80 percent exposure to the designated tokens, related products, and derivatives. This hybrid approach aims to offer regulated access to assets that have largely traded on cryptocurrency exchanges, while navigating regulatory constraints on direct holdings. The filings specify that creation and redemption of shares would primarily occur through cash transactions, and the funds intend to qualify as regulated investment companies to avoid federal...