Bitwise Proposes Stablecoin & Tokenization ETF
Bitwise Asset Management has filed a proposal with the U.S. Securities and Exchange Commission (SEC). The new fund, called the Bitwise Stablecoin & Tokenization ETF, aims to invest in companies and crypto assets involved in stablecoins and tokenized finance.
Fund Structure and Investment Strategy
The ETF will track the Bitwise Stablecoin & Tokenization Index. It will invest at least 80% of its assets in two main categories, or “sleeves.”
- The equity sleeve will invest in up to 20 major companies. These include firms involved in stablecoin issuance, tokenization infrastructure, exchanges, payment processors, and retailers.
- The crypto asset sleeve will hold exchange-traded products and oracles that support blockchain infrastructure. Individual holdings will have capped weightings to limit risk.
The fund will not invest directly in cryptocurrencies.
Regulatory Context and Market Impact
Bloomberg analyst Eric Balchunas said the ETF could launch by Thanksgiving if the SEC approves it. This filing follows Bitwise’s recent proposal for an Avalanche (AVAX) spot ETF, showing the firm’s strong crypto focus.
The timing coincides with increased regulatory attention. The Federal Reserve will host a conference next month on tokenized financial products. SEC Chair Paul Atkins has also called for regulatory relief to help U.S. investors compete in tokenized markets.
If approved, Bitwise’s ETF would join a growing list of crypto ETF proposals. Coinbase and Kraken are also exploring tokenized equities that may compete with traditional brokerages. However, industry groups warn about unresolved risks related to settlement and ownership rights.
By targeting stablecoin infrastructure and tokenized assets, Bitwise expects the next adoption wave to merge crypto with traditional finance. Approval of this fund would test the SEC’s evolving stance on tokenization and could increase competition between crypto firms and Wall Street.
