Bitwise proposes 11 hybrid-structure ETFs tracking AAVE, ZEC, TRX, among others
Bitwise has filed a registration statement to launch nearly a dozen new crypto exchange-traded funds tracking a range of different altcoins, including AAVE, ZEC, and TRX.
- Bitwise has filed with the U.S. Securities and Exchange Commission to launch 11 single asset crypto ETFs tied to altcoins like AAVE, UNI, TRX, and ZEC, among others.
- The proposed Bitwise Strategy ETFs use a hybrid structure, with up to 60% held in the underlying token and the remainder allocated to related ETPs or derivatives.
On Wednesday, the firm filed paperwork with the U.S. Securities and Exchange Commission for 11 new funds tracking individual cryptocurrencies such as AAVE, Uniswap’s UNI, privacy coin ZEC, Canton Network’s CC, Ethena’s ENA, Hyperliquid’s HYPE, NEAR Protocol’s NEAR, Starknet’s STRK, Sui’s SUI, Bittensor’s TAO, and Tron’s TRX.
A hybrid structure
Dubbed Bitwise Strategy ETFs, each of the proposed funds will track their respective altcoins and offer regulated, brokerage-based exposure for those looking to invest without the complexity of managing private wallets or self-custody.
“The Fund seeks to achieve its investment objective through direct and indirect investments in ‘AAVE,’ the governance and utility token of the Aave Protocol,” the filing said, regarding the Bitwise AAVE Strategy ETF.
However, unlike the fund manager’s other recently launched spot crypto products that are 100% backed by the underlying digital asset, the new products are structured as hybrid vehicles. Up to 60% of the fund’s assets may be held in the actual token, while 40% would be allocated to ETPs or derivatives referencing the same asset.
“The Fund may also invest in derivatives contracts, such as futures contracts and swap agreements that utilize AAVE or an AAVE ETP as the reference asset. Under normal market conditions, the Fund will invest at least 80% of its net assets plus borrowings in AAVE, AAVE ETPs, and AAVE Derivatives,” according to the filing.
Bitwise has selected Coinbase Custody Trust Company LLC as the custodian, consistent with the firm’s approach for many of its other crypto investment products.
The specific tickers for each of the funds remained unspecified in the current filing. If approved, the ETFs are expected to be listed on NYSE Arca “under a ticker symbol that will be determined prior to commencement of trading,” the filing noted.
Bitwise continues expanding offerings
Over the past few months, Bitwise has filed for and debuted a number of crypto ETF products, including the Bitwise Solana Staking ETF, which began trading in late October, and the Bitwise XRP ETF that went live in the second half of November.
Earlier this month, Bitwise submitted its Form S-1 for an ETF tracking the Sui token, as it awaits approval of another vehicle dubbed the Bitwise 10 Crypto Index ETF, which offers diversified exposure to the top 10 cryptocurrencies by market cap.
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