Bitwise Asset Management is making strides in the cryptocurrency investment arena with its recent submission of applications for 11 new exchange-traded funds (ETFs) focused on various altcoins. This move, aimed at expanding the availability of digital assets within regulated markets, is contingent on the approval of the U.S. Securities and Exchange Commission (SEC).
The proposed ETFs will cover a range of cryptocurrencies, including AAVE, NEAR, UNI, and ZEC, among others. These funds are designed to pursue capital appreciation and are set to potentially launch on March 16, 2026, provided they receive the necessary regulatory go-ahead.
Each ETF will utilize a hybrid structure that incorporates direct token holdings, crypto-linked exchange-traded products (ETPs), and derivatives. This approach marks a shift from Bitwise”s previous offerings, which were entirely spot-backed, by allowing for a more flexible investment strategy within a single fund.
According to the filing documents, the allocation strategy for these ETFs will be approximately 60% of assets directed towards direct ownership of the specified cryptocurrencies. The remaining 40% will be invested in ETPs that track these assets, with additional exposure to be achieved through derivatives such as futures contracts and swap agreements. Under typical market conditions, each fund aims to invest at least 80% of its net assets, along with any borrowings, in a combination of the relevant tokens, associated ETPs, and related derivatives.
For instance, the strategy outlined for the Bitwise AAVE Strategy ETF indicates that both direct and indirect investments tied to the Aave ecosystem may be utilized, including derivatives linked to AAVE or AAVE-related ETPs.
In terms of custody, Bitwise has appointed Coinbase Custody Trust Company LLC as the custodian for these proposed ETFs, aligning with similar arrangements used for its existing crypto investment products. Should the SEC approve these applications, the ETFs are expected to be listed on NYSE Arca, with trading symbols to be determined prior to their launch.
This latest round of applications comes amidst ongoing regulatory scrutiny concerning crypto-based exchange-traded products. Earlier this year, the SEC set a significant precedent by approving 11 spot Bitcoin ETFs, which could influence the approval process for these new offerings. Additionally, Bitwise had recently received expedited approval for a combined spot Bitcoin and Ethereum ETF, demonstrating the firm”s proactive approach in the evolving ETF landscape.
As Bitwise continues to innovate and expand its ETF product lineup, the cryptocurrency community will be watching closely to see how these developments unfold, particularly in light of the SEC”s regulatory stance.
