NYSE Arca Files to List BITW as the World’s First Crypto Index ETP

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The financial world is witnessing a pivotal moment in crypto asset accessibility as NYSE Arca has officially filed Form 19b-4 to uplist the Bitwise 10 Crypto Index Fund (BITW) as an exchange-traded product (ETP). This landmark move marks a significant step toward mainstream integration of digital assets, positioning BITW as the world’s first and largest crypto index ETP.

Currently trading on the OTCQX Best Market, BITW is managed by Bitwise Asset Management, the leading U.S.-based crypto index fund manager. The conversion to an ETP structure aims to enhance investor access, improve price efficiency, and strengthen regulatory oversight—key milestones in the maturation of crypto investment vehicles.

👉 Discover how next-generation ETPs are reshaping digital asset investing

Why the ETP Structure Matters

Exchange-traded products (ETPs) offer structural advantages over traditional closed-end funds or trusts, particularly in volatile and fast-moving markets like cryptocurrency. One of the most critical benefits is the creation and redemption mechanism.

Unlike OTC-traded funds, ETPs allow authorized participants to create or redeem shares directly with the issuer at Net Asset Value (NAV). This arbitrage mechanism helps keep the market price of shares closely aligned with the underlying value of the fund’s holdings—reducing premiums or discounts that often plague OTC-listed crypto funds.

Hunter Horsley, CEO of Bitwise, emphasized the strategic importance of this transition:

“Bitwise believes that ETPs are among the most efficient, convenient, and useful vehicles for providing crypto exposure. We remain committed to converting BITW to an ETP.”

This shift not only improves transparency and pricing accuracy but also aligns BITW with established financial norms—making it more attractive to institutional investors, financial advisors, and retail participants alike.

A Proven Track Record Since 2017

The Bitwise 10 Crypto Index Fund launched in November 2017 as the world’s first crypto index fund. Over seven years, it has become a benchmark for diversified exposure to the digital asset ecosystem, now operating in a market valued at over $3 trillion.

Bitwise has consistently advanced its mission: to deliver simple, regulated, and transparent access to crypto’s transformative potential. Key milestones include:

Matt Hougan, Chief Investment Officer at Bitwise, reflected on the journey:

“From Bitwise's beginning in 2017, we've sought to give investors easy exposure to crypto's groundbreaking potential. BITW opened up new possibilities as the first fund to provide a broad, index-based approach to crypto markets, and it remains the leader in its class. We’re excited for the next phase of BITW’s development.”

Investment Methodology: Broad Exposure, Smart Filtering

The Bitwise 10 Crypto Index Fund offers investors exposure to the 10 largest crypto assets by market capitalization, rebalanced monthly to reflect market dynamics. This disciplined, rules-based approach ensures diversification while minimizing concentration risk.

Importantly, the fund applies proprietary risk screens to exclude assets with red flags such as low liquidity, centralized control, or unresolved regulatory issues. This methodology combines market-weighted exposure with risk mitigation—striking a balance between growth potential and investor protection.

As of October 31, 2024, the fund’s holdings were allocated as follows:

This composition reflects a strong core in foundational assets like Bitcoin and Ethereum while maintaining exposure to high-potential layer-one platforms and decentralized finance (DeFi) innovators.

👉 See how index-based strategies outperform active picking in volatile markets

Frequently Asked Questions (FAQ)

What is an ETP, and how is it different from a traditional fund?

An exchange-traded product (ETP) trades on a regulated stock exchange like a stock but tracks an underlying index or asset basket. Unlike closed-end funds or OTC-traded vehicles, ETPs allow continuous creation and redemption of shares at NAV, which helps maintain price stability and reduces premiums/discounts.

Why is listing BITW as an ETP important?

Listing BITW on a national securities exchange enhances liquidity, transparency, and regulatory compliance. It enables real-time trading during market hours, improves price discovery, and makes BITW more accessible to a broader range of investors—including those using automated trading platforms and retirement accounts.

Is BITW similar to a Bitcoin ETF?

While both offer exposure to crypto assets, BITW is broader in scope—it includes the top 10 crypto assets, not just Bitcoin. Additionally, BITW has been publicly traded since 2020 and is already SEC-reporting, giving it a regulatory head start over newer entrants.

How does monthly rebalancing benefit investors?

Monthly rebalancing ensures the fund reflects current market conditions. As new projects gain traction or others decline, the index dynamically adjusts—keeping investor exposure relevant without emotional or speculative decision-making.

What risks should investors consider?

Crypto investing involves high volatility, cybersecurity threats, regulatory uncertainty, and liquidity risks. Prices can swing dramatically in short periods. Investors should only allocate capital they can afford to lose and conduct independent due diligence before investing.

Can I hold BITW in my brokerage or retirement account?

Yes—once listed as an ETP on NYSE Arca, BITW will be eligible for inclusion in most major brokerage platforms and self-directed IRAs, significantly expanding access for everyday investors.

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Final Thoughts: The Future of Crypto Investing Is Here

The proposed uplisting of BITW represents more than a structural upgrade—it’s a signal of crypto’s growing legitimacy in traditional finance. By transitioning from OTC trading to a regulated exchange environment, BITW sets a new standard for transparency, efficiency, and investor protection in digital asset investing.

As the crypto market continues to evolve, products like BITW offer a balanced path forward: combining innovation with regulation, diversification with discipline.

👉 Learn how institutional-grade crypto products are changing investment portfolios

For financial advisors, institutions, and individual investors seeking reliable exposure to the digital economy, the evolution of BITW into an ETP could mark the beginning of a new era in asset management—one where crypto is no longer fringe, but foundational.