Bitwise filed for a new exchange-traded fund tracking the performance of crypto innovators. It plans to launch a “crypto innovators exchange-traded fund”, which seeks to provide investment results that correspond to the performance of companies on the ‘Bitwise Crypto Innovators Index.’
According to a 5 February filing with US Securities and Exchange Commission (SEC), Bitwise defined it as:
“Crypto Innovators” generally refers to companies that service and transact in the segment of the economy dealing with crypto assets and distributed ledger technology (e.g., blockchain technology).
Specifically, crypto innovators include digital asset trading platforms, custodians, and wallets; as well as “financial services providers leveraging crypto.” The list includes institutions that service clientele involved in the crypto ecosystem as well.
Crypto mining firms, technology hardware, software, and solutions providers, along with “issuers that own a material amount of crypto” are also a part of the list. Firms that generate revenues relating to crypto or DLT are included as well.
The filing detailed screening rules that state 70% of the Index will consist of firms that derive more than 75% of their revenue directly from crypto servicing or transacting or entities having over 75% of net assets by direct crypto holdings. These firms must have a minimum market capitalization of $100 million. In addition, the document read:
The Fund will not invest in crypto assets directly or through the use of derivatives. The Fund also will not invest in initial coin offerings.
On 4 January, Bitwise surpassed $500 million in assets under management and recorded Q4 inflows into its Bitcoin, Ethereum, and crypto index funds, outpacing previous quarters. As of last week, the asset manager decided to list its Bitcoin fund on OTC markets.