The race to be the first crypto ETF is becoming more crowded by the day. The newest entrant in this space is Bitwise. It has filed for “Hold 10 Cryptocurrency Index Fund,” which will launch a market-cap-weighted index of the top 10 crypto coins. Though the Securities and Exchange Commission (SEC) is not giving airs to any cryptocurrency ETF proposals yet, the sudden surge in such applications has driven the price of the currency beyond $8,000 this week.
Everybody’s Into Regulated ETF Offering
Companies across the US can’t resist the temptation of launching the first cryptocurrency ETF. The market is unregulated, and exchanges like Coinbase are also regulated by states sporadically. A federal agency like the SEC could help in launching cryptos into a new era of regulation, where they could come to par with traditional investment methods.
Cryptocurrency ETFs will help casual investors, as well as conservative investors, to take a chance in a highly regulated crypto derivative. Launching ETFs could affect cryptocurrency prices, and they may not remain as volatile as before.
Bitwise, the asset manager is looking to track the top 10 largest cryptocurrencies in the market. It would include Bitcoin, the largest cryptocurrency in the world. Rumors about VanEck and SolidX applications getting SEC approval started circulating recently, driving the prices higher this week.
The Waiting List Is Long
The US SEC isn’t in a hurry to approve any application, especially when several of them are piling on its desk. But the waitlist does not deter Bitwise Global Head of Research Matt Hougan, who said:
“We’re joining the queue. The market is professionalizing in a direction that the SEC would allow a crypto ETF onto the market.”
What makes Bitwise application different from the others is the fact that they intend to gauge ten cryptocurrencies. Gemini, SolidX, and VanEck applications are for Bitcoin-only ETFs, which ups their risks in the market. Bitwise can depend on other projects like Ethereum, Ripple, EOS, Cardano, Tron, Bitcoin Cash, IOTA and Stellar Lumens, while the others do not enjoy such diversification.
However, it is important to note that Bitcoin, even with its massive fall in valuation, still rules the market cap of the crypto sector. Of the total $303 billion market cap of over 1,600 cryptocurrencies, Bitcoin alone holds over $143 billion, per CoinMarketCap data.