Bitwise Files for 11 Crypto ETFs With Hybrid US-European Strategy
Bitwise Funds Trust submitted SEC registration statements on December 30 for eleven strategy-based crypto ETFs targeting tokens such as AAVE, Uniswap, NEAR, and Zcash. These funds will trade on NYSE Arca and are expected to become effective 75 days after filing.
The ETFs employ a hybrid US–European structure, blending up to 60% direct token holdings with at least 40% exposure through European exchange-traded products (ETPs). Shares will trade intraday with a target of up to 80% combined exposure to tokens, ETPs, and derivatives. Up to 25% of fund assets may be allocated to Cayman Islands subsidiaries to facilitate tax efficiency and derivatives access.
Custody arrangements include Bank of New York Mellon administering and safeguarding traditional securities, while Coinbase Custody Trust Company and BitGo Europe GmbH will custody digital assets.
Regulatory risks remain, given that tokens could be classified as securities or commodities, potentially leading to fund dissolution if classifications change. Exposure to European ETPs adds issuer risk and cross-border valuation challenges. Additionally, creation and redemption of shares will be cash-based rather than in-kind, possibly increasing capital gains distributions compared to typical ETFs.
Bitwise intends for the funds to qualify as Regulated Investment Companies to avoid federal-level taxation, provided income is distributed to shareholders. This initiative aligns with a broader industry push following the SEC’s 2025 generic listing standards, with Bitwise forecasting that more than 100 crypto ETFs could launch by 2026.
