The SEC has approved the listing of the Bitwise 10 Crypto Index ETF on NYSE Arca, marking a significant step for diversified cryptocurrency investment products. This ETF tracks the top 10 digital assets by market cap, offering investors exposure to Bitcoin, Ethereum, and others through a regulated exchange-traded fund. Approval ensures compliance with strict portfolio rules, enhancing investor protection and market transparency.
- The Bitwise 10 Crypto Index ETF follows a market-cap-weighted index of the largest cryptocurrencies.
- It maintains at least 85% of assets in SEC-approved digital holdings, primarily Bitcoin and Ethereum.
- Custody is handled by Coinbase Custody Trust Company for crypto and BNY Mellon for cash, with monthly rebalancing.
SEC Approves Bitwise 10 Crypto Index ETF Listing on NYSE Arca for Diversified Crypto Exposure (152 characters)
What is the Bitwise 10 Crypto Index ETF?
The Bitwise 10 Crypto Index ETF is an exchange-traded fund designed to track the performance of the top 10 largest cryptocurrencies by free-float market capitalization. Approved by the SEC on November 18, 2025, it allows investors to gain diversified exposure to digital assets like Bitcoin and Ethereum without directly holding them. The ETF adheres to NYSE Arca Rule 8.500-E, ensuring regulated trading under strict compliance guidelines.
How does the portfolio compliance work for the Bitwise 10 Crypto Index ETF?
The Bitwise 10 Crypto Index ETF must hold at least 85% of its portfolio in SEC-approved digital assets, such as Bitcoin and Ethereum, which comprised nearly 90% of the assets as of the June 2025 reporting period. The remaining 15% can include other cryptocurrencies like XRP, Solana, and Cardano, subject to ongoing monitoring. If the portfolio dips below the threshold by the 4:00 p.m. Eastern Time evaluation, the sponsor must notify NYSE Arca, potentially leading to trading halts until rebalanced, with monthly adjustments mirroring the underlying Bitwise 10 Large Cap Crypto Index.
Frequently Asked Questions
What are the key holdings in the Bitwise 10 Crypto Index ETF?
The ETF primarily holds Bitcoin and Ethereum, making up about 90% of the portfolio for compliance, alongside XRP, Solana, Cardano, and five other top digital assets by market cap. It uses a free-float, market-cap-weighted approach to ensure diversification across qualified trading platforms, providing balanced exposure without concentrating risk in a single cryptocurrency.
Is the Bitwise 10 Crypto Index ETF suitable for beginner crypto investors?
Yes, this ETF offers a straightforward way for beginners to invest in a basket of leading cryptocurrencies through a familiar stock exchange format, reducing the need to manage individual wallets or exchanges. Traded on NYSE Arca with daily NAV calculations and 15-second indicative values, it promotes transparency and liquidity, much like traditional ETFs.
Key Takeaways
- Regulatory Milestone: The SEC’s de novo review confirms the ETF’s structure prevents fraud and protects investors under the Securities Exchange Act.
- Custody and Pricing: Assets are securely held by Coinbase and BNY Mellon, with CF Benchmarks providing reference prices from 3:00 p.m. to 4:00 p.m. ET for accurate NAV.
- Investor Action: Consider this ETF for diversified crypto access, but monitor monthly rebalances and compliance notifications for optimal portfolio strategy.
Conclusion
The SEC’s approval of the Bitwise 10 Crypto Index ETF on NYSE Arca represents a pivotal advancement in regulated cryptocurrency investment, blending the portfolio compliance of Bitcoin and Ethereum with broader digital asset exposure. As the crypto market evolves, this ETF strengthens investor confidence through transparent pricing and robust oversight. Stay informed on such developments to capitalize on emerging opportunities in the digital asset space.
The Securities and Exchange Commission has granted formal approval for NYSE Arca to list and trade the Bitwise 10 Crypto Index ETF, announced on November 18, 2025. This decision follows an extensive review process, including multiple comment periods, procedural extensions, and a final amendment from the exchange in July 2025. The approval overrides an earlier July 22, 2025, decision, culminating in a fresh de novo evaluation under Section 19(b)(1) of the Securities Exchange Act of 1934.
This ETF tracks the Bitwise 10 Large Cap Crypto Index, a benchmark that weights the ten largest digital assets by free-float market capitalization on qualified platforms. Investors can now access a diversified portfolio emphasizing Bitcoin (BTC) and Ethereum (ETH), which dominate the holdings. According to SEC filings, these two assets account for nearly 90% of the portfolio as of June 2025, ensuring the fund meets the 85% threshold for approved components.
The structure mandates that at least 85% of the ETF’s assets remain in digital holdings previously deemed suitable by the SEC as underlying commodities for exchange-traded products. The remaining 15% may include emerging assets like XRP, SOL, and ADA, but only if they align with regulatory standards. This diversification aims to mirror the index’s monthly rebalancing schedule, adapting to market shifts while maintaining stability.
Custodial arrangements are a cornerstone of the approval. Coinbase Custody Trust Company will safeguard the cryptocurrency assets, leveraging its established role in institutional crypto storage. Meanwhile, The Bank of New York Mellon handles cash custody, administration, and transfer agent responsibilities, providing a layer of traditional financial security.
Net asset value (NAV) calculations rely on standardized reference prices from CF Benchmarks Ltd. These prices aggregate trading data from 3:00 p.m. to 4:00 p.m. Eastern Time, offering a reliable U.S. dollar valuation for the ETF’s holdings. During NYSE Arca’s core trading hours, an indicative value updates every 15 seconds, aligning with transparency standards for commodity-based ETFs and enabling real-time market participation.
The SEC’s order affirms that NYSE Arca’s proposal complies with Section 6(b)(5) of the Exchange Act, designed to prevent manipulative practices, foster fair trading, and protect public interest. It also meets Section 11A(a)(1)(C)(iii) requirements, ensuring market participants have access to quotation and transaction data for accurate pricing. This validation underscores the ETF’s role in bridging traditional finance with the crypto ecosystem.
As noted in the approval documents, the ETF operates under NYSE Arca Rule 8.500-E for Trust Units, a framework tailored for asset-backed securities. If the portfolio approaches non-compliance—such as falling below 85% approved assets by the daily cutoff—the sponsor must alert the exchange by 4:00 p.m. ET. Trading could halt in the subsequent session until rebalancing restores adherence, minimizing risks to investors.
This development builds on prior SEC approvals for Bitcoin and Ethereum spot ETFs, expanding options for institutional and retail investors seeking crypto exposure without direct ownership complexities. Experts, including those from regulatory analyses by the SEC staff, highlight the importance of such products in promoting market integrity. For instance, a review of similar filings emphasized that diversified indices like the Bitwise 10 reduce volatility compared to single-asset funds.
The approval process involved rigorous scrutiny, including public comment periods that addressed concerns over asset custody, pricing accuracy, and manipulation risks. NYSE Arca’s July 2025 amendment addressed these, leading to the final green light. This ETF’s launch could attract significant inflows, given the growing demand for regulated crypto vehicles amid a maturing market.
Looking at the broader context, the Bitwise 10 Crypto Index has historically provided a balanced view of the crypto sector. As of late 2025 data, it includes BTC and ETH as anchors, with allocations to XRP, SOL, ADA, and others based on market performance. The index’s methodology—free-float adjusted and cap-weighted—ensures representation of liquid, major assets traded on compliant exchanges.
For investors, the ETF offers practical benefits: no need for personal wallets, reduced counterparty risks through custodians, and integration into standard brokerage accounts. However, as with all investments, volatility in underlying assets remains a factor. The SEC’s emphasis on daily monitoring and rebalancing protocols aims to mitigate this, fostering a safer entry point.
In terms of operational transparency, the ETF will disclose holdings and NAV daily, similar to equity ETFs. CF Benchmarks’ role in pricing is critical, as it uses volume-weighted averages from major venues during the specified window, avoiding outliers from less regulated periods. This methodology, praised in SEC reviews, aligns with global standards for crypto benchmarks.
The approval also signals regulatory evolution. While Bitcoin and Ethereum ETFs paved the way, including multi-asset indices like this one demonstrates the SEC’s willingness to approve diversified products under stringent conditions. Commenters during the review process, including investor advocates, supported this as a step toward mainstream adoption, provided safeguards remain robust.
Potential impacts include increased liquidity for the included assets and further institutional interest in crypto. With custodians like Coinbase and BNY Mellon involved, the ETF benefits from proven infrastructure. Monthly rebalances will adjust weights as market caps shift, keeping the portfolio current without excessive trading costs.
Overall, the Bitwise 10 Crypto Index ETF’s listing enhances the NYSE Arca’s offerings, positioning it as a hub for innovative financial products. Investors should evaluate it within a diversified strategy, considering the 85% compliance rule as a key risk management tool.
The tweet from BankXRP on November 19, 2025, highlights the ETF’s structure: daily NAV with verified pricing, 85% in approved assets, and a mix including BTC, ETH, XRP, SOL, and ADA. This social media buzz underscores public enthusiasm for the product.
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