Bitwise has filed another application with the SEC to launch a cryptocurrency ETF. The new ETF will track not the price of digital assets, but the stocks of companies operating in the industry.
Bitwise is a digital asset management and cryptocurrency index provider. The new Bitwise Crypto Innovators ETF will track stock prices of companies participating in its own Bitwise Crypto Innovators Index.
The filing with the US Securities and Exchange Commission (SEC) emphasizes that the fund will track firms “operating in the economy related to crypto assets and distributed ledger technology.”
Thus, the index can include various companies working in the field of cryptocurrencies and blockchain: custodian services, financial and mining companies, blockchain and wallet developers, as well as any other companies “owning a significant amount of cryptocurrencies, or generating profits from businesses related to industry “.
In addition, the application defines the rules for creating the index: 70% of the companies selected for the index must receive at least 75% of the profits from working in the cryptocurrency sector, or store more than 75% of assets in cryptocurrencies. In addition, the capitalization of such companies must exceed $ 100 million.
The rest of the index should be composed of large corporations that have launched a “dedicated initiative” in the cryptocurrency industry, with this initiative to be corroborated by quarterly or annual reports. The capitalization of companies from this group should exceed $ 10 billion.
The Bitwise Crypto Innovators ETF will not directly invest in cryptocurrencies or buy derivative products, nor will it participate in initial token offerings (ICOs).
Recall that in mid-January last year, Bitwise withdrew an application to launch an ETF on Bitcoin after repeated and unsuccessful attempts to obtain SEC approval.
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