Bitwise, one of the world’s largest cryptocurrency fund managers, has filed a new prospectus with the United States Securities and Exchange Commission, or SEC, to launch an exchange-traded fund for so-called “crypto innovators.”
The fund manager filed Form N-1A with the securities regulator on Feb. 5, where it outlined its intent to offer the Bitwise Crypto Innovators ETF. The proposed ETF will track the performance of the Bitwise Crypto Innovators Index.
The proposed Index will be comprised primarily of companies that derive more than 75% of their revenue from the crypto sector or that have more than 75% of their net assets held in cryptocurrency. The remainder includes large-cap companies that have a “dedicated business initiative” focused on crypto.
According to the prospectus, crypto innovators include digital trading platforms, custodians and wallets; financial service providers leveraging crypto assets or blockchain technology; financial institutions serving clients involved in the digital asset space; and blockchain infrastructure service providers.
The document states:
“The term “Crypto Innovators” generally refers to companies that service and transact in the segment of the economy dealing with crypto assets and distributed ledger technology.”
Notably, the proposed ETF will not invest in crypto assets directly or through derivatives. The fund will also avoid any dealings with initial coin offerings.
For years, Bitwise has been at the forefront of the crypto ETF debate. In Jan 2020, the fund manager shelved its long-standing Bitcoin ETF application, following a similar move from VanEck. At the time, Bitwise told that it plans to re-file the application “at an appropriate time.”
That time could be approaching as more institutions hop on board the Bitcoin bandwagon. The digital asset has been in rally mode for months thanks to a new wave of corporate and institutional buyers. On Monday, Tesla confirmed that it had allocated a large portion of its balance sheet to BTC, becoming perhaps the most high-profile buyer in history.