Bitwise Submits StableCoin and Tokenization ETF to SEC
Bitwise, a US-based crypto asset manager, has submitted a proposal to the US Securities and Exchange Commission (SEC) for a new exchange-traded fund (ETF) focused on stablecoins and tokenization. The “StableCoin & Tokenization ETF” aims to provide investors with exposure to companies involved in the stablecoin and tokenization space, as well as cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).
According to the submission, the proposed ETF will track an index that is divided into two equal-weighted sleeves: an equity sleeve and a crypto-asset sleeve. The equity sleeve will focus on companies directly connected to stablecoins and tokenization, while the crypto-asset sleeve will provide exposure to stablecoins, tokenization, and blockchain infrastructure, including blockchain oracles.
Index Construction and Crypto-Asset Inclusion
The index will undergo quarterly reconstruction, and the largest crypto ETP in the sleeve will be limited to 22.5%. To be included in the crypto-asset sleeve, the index provider must determine that an asset is a crypto-asset at its own discretion. The prospectus states that “in order to have the inclusion in the crypto assets of the index, the index provider must determine at his own discretion that a asset is a crypto assets value.”
The fund will compete with other ETFs, such as the Nicholas Wealths Crypto Income ETF (Blox), which also combines stock and crypto-related exposure. Bitwise is a well-established crypto asset manager, founded in 2017, and currently manages over 20 US-listed crypto ETFs.
Stablecoins and Tokenization as Investable Topics
Since the passage of the Genius Act in July, which provides a regulatory framework for stablecoins, the sector has gained significant attention in the crypto space. The stablecoin market has grown from $205 billion to almost $268 billion between January and August, representing a 23% increase. According to Defillama, the overall market capitalization of stablecoins is currently $289.7 billion.
In addition to stablecoins, tokenized real-world assets (RWAS) have also gained traction, reaching around $76 billion in market capitalization. The growth of RWAS has been supported by a shift in regulatory stance in the US, with SEC Chairman Paul Atkins expressing support for tokenization as an “innovation” in July.
The SEC has delayed most ETF proposals, including Bitwise’s, until October and November. If approved, the new ETF is expected to launch in November, according to Bloomberg Analyst Eric Balchunas. For more information, visit https://cointelegraph.com/news/bitwise-files-stablecoin-tokenization-etf-sec?utm_source=rss_feed&utm_medium=rss_tag_regulation&utm_campaign=rss_partner_inbound
