If you've ever felt overwhelmed trying to pick which cryptocurrencies might actually matter five years from now, Bitwise Asset Management has a proposition for you. The firm just brought its Bitwise 10 Crypto Index ETF (BITW) to the NYSE ARCA, upgrading what started in 2017 as the world's first crypto index fund from its previous home on the OTCQX Best Market.
The idea is refreshingly straightforward: instead of betting on specific coins, you're buying exposure to whatever the market decides are the 10 biggest cryptocurrencies at any given moment.
How the Index Actually Works
BITW follows the Bitwise 10 Large Cap Crypto Index, which rebalances monthly to hold the sector's 10 largest digital assets by market capitalization. Each asset gets screened for liquidity, custody capabilities, security standards, regulatory status and compliance requirements. The fund doesn't cap its top holding, which means it moves with the market's heaviest hitters.
Right now, that means Bitcoin (BTC) dominates with a 74.34% weighting. Ethereum (ETH) comes in second at 15.55%, followed by XRP (XRP) at 5.17% and Solana (SOL) at 3.07%. The remaining positions include Cardano, Chainlink, Litecoin, Avalanche, Sui and Polkadot, all fighting for much smaller slices.
New Rules for the ETF Structure
The move to a proper exchange-traded product brought some regulatory constraints. Under the revised framework, BITW must invest 90% of its portfolio in crypto assets that already have single-coin ETFs trading on exchanges. That currently limits the core holdings to Bitcoin, Ethereum, Solana and XRP. Everything else has to fit within an aggregate 10% allocation cap.
The good news? As more cryptocurrencies gain regulatory approval and get their own ETFs, they could graduate into that 90% bucket, giving the fund more flexibility over time.
Why Index Investing in Crypto Matters
Bitwise argues this approach solves a genuine problem for investors who believe digital assets are here to stay but have no idea which specific coins will survive the inevitable shakeout.
"Most investors we meet are convinced crypto is here to stay, but they don't know who the winners will be or how many will succeed," said Matt Hougan, CIO of Bitwise. "BITW will own the largest, most successful assets, whatever they happen to be."
CEO Hunter Horsley thinks the timing makes sense, pointing to accelerating mainstream adoption as evidence that 2025 might be the perfect moment for this kind of product. He suggested index investing could become one of the most popular ways for traditional investors to get crypto exposure without the headache of managing wallets, security keys and exchange accounts.
For investors who want broad crypto exposure without playing favorites, the NYSE listing makes BITW significantly more accessible than its over-the-counter predecessor. Whether that translates into actual demand depends on how comfortable Wall Street gets with letting an algorithm pick its digital assets.