Bitwise Asset Management has filed with the SEC for a Stablecoin and Tokenization ETF, seeking to provide investors with exposure to stablecoins and tokenized assets.

Executive Summary

Bitwise Asset Management has submitted a prospectus to the US Securities and Exchange Commission (SEC) for a Stablecoin and Tokenization ETF, a move signaling increased institutional interest in digital assets. This proposed ETF aims to bridge traditional finance with the evolving digital asset landscape by offering diversified exposure to companies involved in stablecoins and asset tokenization, along with crypto-linked exchange-traded products.

The Proposal in Detail

The proposed Bitwise Stablecoin and Tokenization ETF is designed to track the Bitwise Stablecoin and Tokenization Index through two distinct investment sleeves. The first sleeve focuses on equities of public companies engaged in the stablecoin and tokenized asset ecosystem. These include stablecoin issuers, infrastructure providers, payment processors, tokenized exchanges, and stablecoin-focused retailers. This equity sleeve will invest up to 50% of the fund's assets, employing a tiered weighting system: Tier 1 companies (direct exposure) are capped at 15%, Tier 2 firms (meaningful but indirect exposure) at 8%, and Tier 3 companies (limited involvement) at 3%. The fund prioritizes the top 20 firms from Tiers 1 and 2, filling any remaining slots with Tier 3 names.

The second sleeve, the crypto asset sleeve, will hold exchange-traded products that provide access to tokenized blockchain platforms. It will select assets representing at least 1% of the stablecoin or tokenized market share and will reserve 5% for oracle tokens that connect real-world data to blockchains. The largest holding within this sleeve is capped at 22.5% of the portfolio, with rebalancing conducted quarterly. This structure leverages the Investment Company Act of 1940 for regulatory streamlining.

Regulatory Landscape and Market Growth

This filing follows a notable shift in the regulatory environment, with SEC Chair Paul Atkins stating in July that the agency views tokenization as an "innovation" to be supported. Further bolstering confidence in the sector is the GENIUS Act of 2025, passed in July, which provides a regulatory framework for stablecoins. This legislative clarity has coincided with substantial growth in the stablecoin market, which expanded from $205 billion to nearly $268 billion—a 23% increase—between January and early August. The total stablecoin market reached $289.7 billion as of a recent Tuesday. Similarly, tokenized real-world assets (RWAs), such as bonds or credit traded on blockchains, have surged in 2025, reaching approximately $76 billion.

Broader Market Implications

The potential approval of Bitwise's ETF, anticipated by Bloomberg analyst Eric Balchunas to launch in November, could significantly impact the broader digital asset and traditional finance markets. This offering is poised to provide a new pathway for traditional investors to access crypto-related assets, further legitimizing stablecoins and tokenization. Such an instrument could attract substantial capital inflows by appealing to investors wary of direct cryptocurrency volatility, potentially increasing trading volumes in major pairs like BTC/USD and ETH/USD. Additionally, the tokenization aspect could enhance liquidity in RWA tokens, with trading pairs like USDT/USD potentially showing increased 24-hour volumes as stablecoins gain prominence in ETF structures. This initiative underscores a growing trend of institutional adoption and the increasing integration of digital assets into mainstream financial products, offering a bridge between traditional financial markets and the digital asset ecosystem. However, investors must consider potential regulatory hurdles, as ETF approvals can be subject to delays, which may influence short-term price action.", image_alt_tags=[