The Bitwise 10 Crypto Index Fund is one of the most recognized and regulated investment vehicles in the digital asset space. Designed to offer investors diversified exposure to the top cryptocurrencies by market capitalization, this fund provides a strategic entry point into the volatile yet high-potential crypto market. In this comprehensive guide, we break down the fund’s current holdings, explore its investment methodology, and highlight why it remains a compelling choice for both new and experienced investors.
What Is the Bitwise 10 Crypto Index Fund?
Launched in 2017, the Bitwise 10 Crypto Index Fund was the first regulated cryptocurrency index fund approved for U.S. investors. It aims to track the performance of the ten largest and most liquid digital assets, excluding tokens issued by centralized exchanges or those deemed securities. The fund uses a modified market-cap weighting approach—capping any single asset at 30% to prevent overconcentration (especially in Bitcoin) and ensuring broader diversification.
This structure allows investors to gain exposure to the overall crypto market without having to individually purchase and manage multiple coins. It's particularly attractive for those seeking passive investment strategies with professional oversight, transparency, and regulatory compliance.
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Core Cryptocurrencies in the Bitwise 10 Index
As of the latest rebalancing, the Bitwise 10 Crypto Index Fund includes the following major digital assets:
- Bitcoin (BTC)
- Ethereum (ETH)
- XRP (XRP)
- Chainlink (LINK)
- Polygon (MATIC)
- Stellar (XLM)
- Avalanche (AVAX)
- Uniswap (UNI)
- Algorand (ALGO)
- Solana (SOL)
Note: Binance Coin (BNB), Cardano (ADA), and Polkadot (DOT) were previously included but have been rotated out due to eligibility rules and market dynamics.
Each of these assets is selected based on strict criteria including liquidity, trading volume, market cap, security, and resistance to manipulation.
1. Bitcoin (BTC) – The Digital Gold Standard
Bitcoin remains the cornerstone of the fund, typically holding a capped weight of 30%. As the first and most widely adopted cryptocurrency, BTC is often viewed as digital gold—a decentralized store of value resistant to inflation and geopolitical instability.
Its robust network security, finite supply (capped at 21 million), and growing institutional adoption make it a foundational asset in any serious crypto portfolio.
2. Ethereum (ETH) – The Engine of Decentralized Innovation
Ethereum is the second-largest holding and serves as the backbone of decentralized applications (DApps), smart contracts, and the broader Web3 ecosystem. With the successful transition to Ethereum 2.0 and proof-of-stake consensus, ETH has significantly improved scalability and energy efficiency.
Its role in powering DeFi, NFTs, and Layer-2 solutions ensures its continued relevance and long-term growth potential.
3. XRP – Bridging Traditional Finance and Blockchain
XRP, developed by Ripple Labs, is optimized for fast and low-cost cross-border payments. Despite ongoing regulatory scrutiny in the U.S., XRP continues to be adopted by financial institutions globally for real-time settlement solutions.
Its inclusion in the index reflects its high liquidity and utility in international remittance systems.
4. Chainlink (LINK) – The Oracle Network Powering Smart Contracts
Chainlink is a decentralized oracle network that securely connects smart contracts with real-world data. As DeFi protocols rely heavily on accurate price feeds and external triggers, LINK plays a critical role in maintaining system integrity.
Its widespread integration across multiple blockchains makes it a key infrastructure token in the crypto economy.
5. Polygon (MATIC) – Scaling Ethereum Efficiently
Polygon offers a suite of scaling solutions for Ethereum, enabling faster and cheaper transactions through sidechains and Layer-2 frameworks. Its compatibility with Ethereum’s ecosystem has made it a preferred choice for developers building scalable dApps.
With strong partnerships and continuous innovation, MATIC strengthens the fund’s exposure to Ethereum’s growth narrative.
6. Stellar (XLM) – Financial Inclusion Through Blockchain
Stellar focuses on connecting financial institutions and enabling low-cost global payments, especially in underserved markets. Its native token, XLM, facilitates cross-currency transfers and remittances with minimal fees.
Backed by nonprofit initiatives and real-world use cases, Stellar brings social impact into the crypto investment landscape.
7. Avalanche (AVAX) – High-Speed Blockchain Infrastructure
Avalanche is known for its high throughput, sub-second finality, and eco-friendly consensus mechanism. It supports custom blockchains and enterprise-grade applications, making it a strong competitor in the smart contract platform space.
Its growing DeFi and institutional adoption justify its place among the top ten.
8. Uniswap (UNI) – Decentralized Exchange Leadership
Uniswap is the largest decentralized exchange (DEX) on Ethereum, using automated market makers (AMMs) to enable permissionless token swaps. As a governance token, UNI gives holders voting rights over protocol upgrades.
Its dominance in trading volume and liquidity provision underscores its systemic importance in DeFi.
9. Algorand (ALGO) – Pure Proof-of-Stake Innovation
Algorand uses a pure proof-of-stake (PPoS) consensus model designed for speed, security, and decentralization. It targets enterprise adoption with carbon-negative credentials and support for smart contracts.
Though less dominant than other platforms, ALGO offers technological differentiation and resilience.
10. Solana (SOL) – High-Performance Blockchain for Mass Adoption
Solana stands out for its lightning-fast transaction speeds and low costs, powered by a unique combination of proof-of-history and proof-of-stake. Despite past network outages, its developer activity and user base continue to grow.
SOL’s presence in the index highlights demand for scalable infrastructure capable of supporting mass-market applications.
Why Invest in the Bitwise 10 Crypto Index Fund?
Investing directly in individual cryptocurrencies requires extensive research, technical knowledge, and active management. The Bitwise 10 Crypto Index Fund simplifies this process with several key advantages:
- ✅ Diversification: Exposure to ten major cryptos reduces reliance on any single asset.
- ✅ Professional Management: Regular rebalancing ensures alignment with market conditions.
- ✅ Regulatory Compliance: Registered with the SEC as a private fund, offering greater investor protection.
- ✅ Transparency: Monthly public reporting of holdings and performance metrics.
- ✅ Risk Mitigation: Capped weights prevent overexposure to volatile leaders like Bitcoin or Ethereum.
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Frequently Asked Questions (FAQ)
Q: How often does the Bitwise 10 Index rebalance?
A: The index is rebalanced quarterly to reflect changes in market capitalization and ensure continued eligibility of components based on liquidity and security standards.
Q: Can retail investors access the Bitwise 10 Crypto Index Fund?
A: Yes, though initially limited to accredited investors, certain versions of the fund are now accessible through alternative investment platforms and retirement accounts.
Q: Why isn’t Binance Coin (BNB) included anymore?
A: BNB was removed due to concerns about centralization and regulatory classification risks associated with exchange-issued tokens.
Q: Does the fund include stablecoins?
A: No. The Bitwise 10 focuses exclusively on non-stablecoin cryptocurrencies to maintain exposure to market volatility and growth potential.
Q: How does Bitwise prevent manipulation in its index?
A: The fund applies filters to exclude tokens with low trading volumes, high exchange concentration, or suspicious trading patterns—ensuring only robust assets are included.
Q: Is there a cryptocurrency custody solution in place?
A: Yes. Bitwise uses qualified custodians like Coinbase Custody to securely store all digital assets, providing an additional layer of trust and safety.
Final Thoughts: A Strategic Gateway to Crypto Markets
The Bitwise 10 Crypto Index Fund offers a disciplined, transparent, and regulated way to participate in the evolution of digital finance. By focusing on the largest and most resilient cryptocurrencies, it balances innovation with risk management—making it ideal for investors who want exposure without speculation.
As blockchain technology continues to mature and integrate into mainstream finance, index-based products like this will likely play an increasingly important role in diversified portfolios.
Whether you're new to crypto or refining your asset allocation, understanding what's inside the Bitwise 10—and why each coin matters—can empower smarter investment decisions in 2025 and beyond.
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