Bitwise 10 Crypto Index ETF debuts on NYSE Arca, featuring BTC, ETH and XRP

Bitwise BITW offers access to 10 digital assets

The Bitwise BITW ETF holds a single basket of the ten largest cryptocurrencies by market capitalization and rebalances monthly. All the digital assets in the basket undergo risk assessment on key factors such as liquidity, security and compliance.

Bitwise stated that the product has no cap on the largest allocation. "So if, in the future, Bitcoin is the only crypto asset that has value and the rest go to zero, BITW will hold almost entirely Bitcoin for investors."

Bitcoin (BTC) currently accounts for the largest allocation in the index fund at 74.34%, followed by Ethereum (ETH) at 15.55%, Ripple (XRP) at 5.17%, and Solana (SOL) at 3.07%. Other smaller allocations include Cardano (ADA), Chainlink (LINK), Litecoin (LTC), Sui (SUI), Avalanche (AVAX) and Polkadot (DOT).

A crypto index fund is similar to a traditional index fund, allowing investors to gain exposure to a basket of cryptocurrencies rather than investing in individual cryptocurrencies.

Since it is an ETF, the index fund is purchased directly on stock exchanges such as NYSE Arca. Investors do not need to hold the underlying assets, providing a broad exposure while eliminating the complexity of storing cryptocurrencies.

Cryptocurrency prices FAQs

How do new token launches or listings affect cryptocurrency prices?

Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.

How do hacks affect cryptocurrency prices?

A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.

How do macroeconomic releases and events affect cryptocurrency prices?

Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.

How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?

Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.