Hybrid ETF structure offers 60% direct crypto exposure plus derivatives, balancing liquidity, regulation, and investor access to altcoins.
Bitwise is making a strong move to broaden crypto ETFs beyond Bitcoin and Ethereum. The asset manager has filed applications with the U.S. Securities and Exchange Commission (SEC) for 11 new altcoin-focused ETFs. This signals growing confidence that demand is shifting toward a wider range of digital assets.
The proposed ETFs cover a variety of crypto sectors, including DeFi, privacy coins, layer-1 blockchains, and AI-linked tokens. Tokens listed in the filings include AAVE, Uniswap (UNI), Zcash (ZEC), Ethena (ENA), Hyperliquid (HYPE), Sui (SUI), NEAR, Starknet, TRON (TRX), Canton, and Bittensor (TAO). If approved, the funds could launch around mid-March 2026.
Rather than launching pure spot ETFs for all assets, Bitwise is using a hybrid structure that regulators are familiar with. Each fund would hold at least 60% of its assets directly in the crypto tokens. The rest could include futures, derivatives, or exchange-traded products linked to the same tokens.
This approach balances direct market exposure with liquidity and operational flexibility. For investors, it provides stronger exposure than futures-only ETFs while remaining within the SEC’s comfort zone.
Some assets in the filings highlight areas of growing institutional interest. Zcash (ZEC) is a privacy-focused token gaining attention again, following Grayscale’s move to convert its ZEC Trust into a spot ETF. SUI remains a focus after Bitwise hinted at a fully spot-based SUI product. The TAO ETF strategy targets AI-linked crypto, which has seen growing adoption and reduced token inflation.
These filings follow Bitwise’s recent ETF launches, including the first U.S. spot Solana ETF, and XRP and Dogecoin-linked funds. Amendments for Hyperliquid also hint that a HYPE ETF could come sooner than expected.
With 11 new proposals, Bitwise is testing the SEC’s willingness to approve altcoin ETFs. If successful, these funds could open a major pathway for regulated investment in altcoins.
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