* Bitwise files with the SEC for 11 new crypto ETFs, providing exposure to tokens like AAVE, TRX, UNI, and others.
* The proposed ETFs use a hybrid structure with up to 60% in underlying crypto assets and 40% in derivatives and ETPs.
Crypto asset manager Bitwise has filed applications with the U.S. Securities and Exchange Commission (SEC) to launch 11 new cryptocurrency exchange-traded funds (ETFs). These funds will give investors exposure to a range of cryptocurrencies, including AAVE, ZEC, TRX, UNI, and others, providing an easier and regulated entry point to the crypto market.
The new crypto strategy ETFs will provide direct exposure to particular cryptocurrencies and indirect exposure through other exchange-traded products (ETPs) or derivatives, unlike traditional spot ETFs that hold underlying assets directly.
The 11 ETFs proposed by Bitwise will be of a hybrid nature. Each fund may have a maximum of 60% of its assets directly invested in the underlying token, with the rest invested in related ETFs, derivatives, or other financial instruments tracking the performance of the asset. This hybrid setup provides greater flexibility, whereby Bitwise will be able to control its exposure whilst remaining within the confines of the existing regulations.
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The filings indicate that the funds can also utilize derivatives, such as futures contracts and swap agreements. This strategy would help reduce some of the risks that investors encounter due to volatility and liquidity problems. An illustration of this is the Bitwise AAVE Strategy ETF, which tracks AAVE by investing directly in the token and indirectly through derivatives.
The suggested ETFs will include a broad spectrum of blockchain ecosystems and decentralized finance (DeFi) projects. They feature major tokens such as AAVE and Uniswap (UNI), as well as more recent entries, such as Bittensor (TAO), Ethena (ENA), and Hyperliquid (HYPE). Others in the filing are Starknet (STRK), Sui (SUI), NEAR Protocol (NEAR), and Canton Network (CC).
Should they receive the regulatory green light, these ETFs will offer convenience to U.S. investors, allowing access to a diverse range of cryptocurrencies associated with smart contract platforms, privacy networks, and DeFi protocols more easily and under regulation. Bitwise is actively diversifying its crypto product portfolio, having recently announced ETFs dedicated to Solana and XRP, as CNF reported.
Bitwise Chief Investment Officer Matt Hougan has expressed optimism in the long-term market prospects despite recent downturns. He projects that Bitcoin will not follow the typical four-year cycle and will reach new all-time highs by 2026 due to the influence of regulatory advancement and institutional involvement.
Besides the 11 crypto ETFs, Bitwise has been expanding its crypto offerings. By the end of 2025, the company applied for a Bitcoin ETF that will track the top 10 cryptocurrencies by market capitalization and an Avalanche ETF that might distribute staking rewards to shareholders.
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