Bitwise Files For Multi-Crypto ETF Amid Indication of Gensler’s Resignation

Key takeaways

• Bitwise seeks to convert its crypto index fund to a crypto exchange-traded product (ETP).
• The 10 Crypto Index Fund (BITW) is one of Bitwise's flagship products.
• Bitwise's application comes amid the recent indication of Gensler's resignation and a potential new SEC Chair.

Bitwise Seeks To Convert Its Index Fund To Multi-Crypto ETP

Prominent asset manager Bitwise wants to convert its 10 Crypto Index Fund (BITW) into a multi-crypto ETP. In an announcement, Bitwise revealed that NYSE Acra filed for the SEC's approval to list its BITW as an ETP on its exchange.

Bitwise's BITW is the first and largest crypto index fund worldwide, comprising several digital assets. The fund boasts about $1.3 billion in assets under management (AUM).

The latest development represents Bitwise's efforts to reposition its publicly traded trust as an ETP structure. This move will foster efficiency and transparency for Bitwise customers and investors.

Also, the move aligns with the asset manager's expansion goals after launching its spot Bitcoin ETF (BITB) and Ethereum ETF (ETHW).

Similarly, Grayscale is pushing to convert its Digital Large Cap Fund into an ETF. Last month, NYSE Acra submitted Form 19b-4 to the SEC seeking authorization to trade Grayscale's fund on the exchange.

This application marks Grayscale's third move to convert its fund into a crypto ETF. The company already has the Grayscale Bitcoin Trust ETF (GBTC) and the Grayscale Ethereum Trust (ETHE).

Meanwhile, the SEC Chair Gary Gensler has reiterated his commitment to stricter regulatory oversight on crypto. Gensler mentioned that Bitcoin is the only crypto asset that doesn't fall in the class of securities. He pointed out that all assets are securities based on the present regulatory framework.

Again, the SEC chair noted that the commission aims to protect investors through its crypto regulatory approaches.

Gensler stated: Court after court has agreed with our actions to protect investors, pointing out that the SEC is empowered to implement these laws in the crypto sector."

The Industry Anticipates Favourable Regulatory Shifts And Boom Via Trump's Pro-Crypto Policies

The crypto industry remains optimistic about favorable regulatory changes in Trump's regime. The market reacted positively, with significant price rallies a few days after Trump's victory.

Moreover, Trump made exciting promises to the crypto industry if he emerged as the US president. While speaking at the 2024 Bitcoin conference, Trump promised to fire the present SEC Chair, Gensler, on his first day in office.

Already, the industry is buzzing with calls for Gensler's resignation since Trump won the election.

Bloomberg senior ETF analyst Eric Balchunas reflected on the possibilities of shifts in sentiment within the industry. He noted that the market will record significant changes once a Trump SEC chair replaces Gensler.

Balchunas believes the transition in the SEC leadership could facilitate more approvals of crypto ETFs in the industry.

He stated: It's early to determine the odds. But the evolving regulatory environment makes it worth a try."

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