Crypto asset manager Bitwise has taken a major step to broaden regulated investment options beyond Bitcoin and Ethereum. The firm has filed paperwork with the U.S. Securities and Exchange Commission (SEC) for a suite of 11 new exchange-traded funds (ETFs), each focused on a single, specific cryptocurrency.
Targeting Key Altcoins
The proposed "Strategy ETFs" would provide exposure to a diverse range of prominent altcoins, including:
Privacy & AI: Zcash ($ZEC ), Bittensor (TAO)
AAVE179.01-0.22%
UNI5.75-0.43%
TAO292.8-1.11%
ZEC448.11+10.75%)
Layer-1 Networks: Sui (SUI), Near (NEAR), and others
If approved, these funds would offer U.S. investors a first-of-its-kind, regulated way to gain ETF exposure to assets that have primarily been traded on crypto-native platforms.
A Hybrid "Strategy" Structure
Unlike straightforward spot ETFs, Bitwise's proposed funds employ a unique hybrid model. Each ETF would:
Directly hold up to 60% of its assets in the underlying cryptocurrency.
Allocate at least 40% to securities from other exchange-traded products (ETPs) tracking the same token.
Potentially use derivatives like futures or swaps to fine-tune exposure.
This structure blends direct ownership with indirect exposure, offering a rules-based approach within the ETF wrapper.
A Strategic Expansion for Bitwise
This move marks a significant evolution for Bitwise's U.S. product lineup, which currently includes spot crypto ETFs (like Bitcoin and Ethereum), crypto equity funds, and index products. Instead of offering diversification, these new funds are designed for targeted, single-asset exposure.
Part of a Growing Trend
Bitwise's filing is part of a broader industry push into altcoin-based products following the successful launch of spot Bitcoin and Ethereum ETFs. On the same day, Grayscale also applied to convert its Bittensor Trust into an ETP, highlighting growing institutional interest in sectors like decentralized AI.
Other asset managers, including VanEck and 21Shares, have recently filed for or launched products tied to Solana (SOL), XRP, and other altcoins. Bitwise's proposal stands out for its scale—an 11-fund family built on a unified strategy template.
The Bigger Picture
These filings signal that ETF issuers are rapidly testing the boundaries of the regulatory landscape. With pathways now established for the largest cryptocurrencies, the race is on to bring a wider array of digital assets—from DeFi and AI tokens to alternative blockchain networks—into the mainstream financial fold. The SEC's response to Bitwise's novel strategy will likely set a precedent for the next phase of crypto ETF development.