Bitwise Aims for Multi-Crypto ETF as Gary Gensler Hints at Resignation

• Bitwise files for multi-crypto ETP amid speculation of SEC Chair Gensler’s resignation.  
• Bloomberg’s Balchunas sees Gensler’s exit potentially easing crypto ETF approvals.  
• Bitwise joins Grayscale in pushing for diversified crypto ETFs amidst growing demand.  

Bitwise has moved to convert its $1.3 billion Bitwise 10 Crypto Index Fund (BITW) into an exchange-traded product (ETP) amid speculation surrounding the potential resignation of U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler. 

On Thursday, November 14, the company announced that NYSE Arca has filed a proposal to list the fund as an ETP, marking a transition for the crypto-focused asset manager.

The proposed ETP will encompass a diversified basket of ten leading digital assets to simplify crypto exposure for retail investors. Bitwise’s move to convert its publicly traded trust into an ETP underscores its efforts to enhance market accessibility and transparency.

According to Bitwise, this would be the first and largest multi-crypto index fund, managing $1.3 billion in assets.

By converting BITW into an ETP, Bitwise seeks to optimize operational efficiency and provide greater transparency for investors.

However, the approval process remains to be determined, particularly given the current regulatory environment. The development follows recent efforts by other major players, such as Grayscale, which also filed to launch a multi-crypto ETF.

The timing of Bitwise’s filing coincides with growing calls for Gary Gensler’s resignation. The SEC Chair recently hinted at stepping down, sparking speculation about regulatory sentiment shifting towards crypto assets. 

A Bloomberg ETF strategist, Eric Balchunas, noted that Gensler’s departure could create a more favorable landscape for crypto ETF approvals. He highlighted that potential leadership changes might open the door to more supportive regulatory policies.

Balchunas also suggested that the SEC may become more receptive to crypto ETPs under a new administration, mainly if a chair aligned with the previous Trump administration takes over. While it remains too early to predict the outcome, Bitwise’s strategic move suggests that the company is preparing for potential regulatory shifts.

The filing by Bitwise is part of a broader trend among asset managers seeking to capitalize on the growing demand for diversified crypto investment products.

Earlier this week, Coinbase announced the launch of its COIN50 index fund, which tracks the top 50 digital assets. This fund was developed in collaboration with VanEck’s Market Vector to provide traders deeper insights into crypto market dynamics.

Bitwise’s decision to convert its crypto index fund to an ETP aligns with its ongoing strategy to expand its product suite. The firm has already introduced spot Bitcoin and Ethereum ETFs, demonstrating its commitment to innovating within the evolving digital asset space.