What is the Crypto 10 Index?
The Crypto 10 Index, represented by the Bitwise 10 Crypto Index Fund, is a pioneering investment product designed to provide diversified exposure to the 10 largest cryptocurrencies by market capitalization. Launched in November 2017, the fund has become a cornerstone for both institutional and retail investors seeking a balanced approach to cryptocurrency investment. With $1.4 billion in assets under management (AUM) as of May 2025, it offers a streamlined way to access the rapidly evolving digital asset market.
Key Features of the Bitwise 10 Crypto Index Fund
Composition and Weighting of Assets
The Bitwise 10 Crypto Index Fund is heavily weighted toward Bitcoin and Ethereum, reflecting their dominance in the cryptocurrency market. The fund’s composition as of 2025 is as follows:
Bitcoin (BTC): ~75%
Ethereum (ETH): ~16%
Other Cryptocurrencies: ~9%, including Solana (SOL), XRP, Cardano (ADA), Avalanche (AVAX), Chainlink (LINK), Polkadot (DOT), Uniswap (UNI), and Bitcoin Cash (BCH).
This allocation ensures exposure to both established cryptocurrencies and emerging projects. The fund employs a quarterly rebalancing mechanism to dynamically adjust asset weightings based on market trends, ensuring relevance in the fast-changing crypto landscape.
Criteria for Asset Inclusion
Bitwise employs strict criteria to determine which assets are included in the fund. These criteria ensure the fund’s integrity and reliability:
Stable Trading Volume: Assets must demonstrate consistent liquidity.
Regulatory Compliance: Cryptocurrencies must adhere to applicable regulations to minimize legal risks.
Minimum Price Threshold: Highly speculative or volatile assets are excluded to protect investors.
This rigorous selection process ensures that the fund focuses on high-quality assets with strong market fundamentals.
Regulatory Developments and SEC Filings
SEC Filings for Crypto ETFs
Bitwise has filed an application with the U.S. Securities and Exchange Commission (SEC) to create an exchange-traded fund (ETF) based on its 10 Crypto Index Fund. This ETF aims to provide indirect exposure to cryptocurrencies through a regulated financial product, making it more accessible to traditional investors.
While the SEC has delayed its decision on the ETF application multiple times, recent approvals of spot Bitcoin and Ether ETFs have increased optimism for broader acceptance of crypto ETFs in the U.S. regulatory environment.
Recent Trends in U.S. Crypto Regulation
The regulatory environment for crypto ETFs in the U.S. has become increasingly favorable. The approval of spot Bitcoin and Ether ETFs marks a significant milestone, signaling growing acceptance of cryptocurrency investment products by regulators. This shift is expected to pave the way for broader adoption of crypto ETFs, including Bitwise’s proposed offerings.
Expansion of Bitwise’s Product Offerings
Bitwise has been actively expanding its range of crypto investment products to cater to diverse investor needs. Key initiatives include:
Filing for Solana ETFs and spot Bitcoin and Ether ETFs.
Rebranding its European XRP ETF as the Bitwise Physical XRP ETP.
These efforts highlight Bitwise’s commitment to innovation and its strategic focus on capturing emerging opportunities in the crypto market.
Security and Custodial Measures
The Bitwise 10 Crypto Index Fund leverages trusted custodians and administrative partners to ensure the secure management of assets:
Coinbase Custody: Responsible for safeguarding the fund’s digital assets.
The Bank of New York Mellon: Manages cash holdings and administrative duties.
This dual-layered approach combines cutting-edge crypto security with traditional financial expertise, enhancing investor confidence.
Market Dynamics and Quarterly Rebalancing
One of the standout features of the Bitwise 10 Crypto Index Fund is its quarterly rebalancing mechanism. This process involves adjusting the fund’s asset weightings based on market performance and trends. By dynamically adapting to the crypto market’s rapid changes, the fund ensures that its composition remains relevant and aligned with investor interests.
Impact of Crypto ETFs on Investors
Benefits for Retail Investors
Crypto ETFs, such as the Bitwise 10 Crypto Index Fund ETF, simplify cryptocurrency investment for retail investors. They offer:
Ease of Access: Exposure to cryptocurrencies without the complexities of managing individual assets.
Regulated Framework: A safer and more transparent investment vehicle.
Benefits for Institutional Investors
For institutional investors, crypto ETFs provide:
Scalability: A streamlined way to integrate crypto into large portfolios.
Compliance: A regulated solution that aligns with institutional investment standards.
Conclusion
The Bitwise 10 Crypto Index Fund represents a significant step forward in the evolution of cryptocurrency investment products. By offering diversified exposure to the largest cryptocurrencies, employing rigorous asset selection criteria, and leveraging trusted custodians, the fund has established itself as a reliable option for investors. As the regulatory environment continues to evolve and Bitwise expands its product offerings, the fund is poised to play a pivotal role in shaping the future of crypto investment.
