The race to bridge traditional finance with the exploding world of digital assets just hit a new gear. In a move that caught many industry observers by surprise just before the new year, major asset manager Bitwise submitted a sweeping set of applications to regulators. This massive filing signals a potential flood of institutional capital into specific corners of the crypto market that have previously been difficult for Wall Street to access.
Bitwise has officially requested approval from the U.S. Securities and Exchange Commission to launch 11 new strategy exchange-traded funds. These funds are designed to track a diverse basket of high-profile altcoins including Zcash, Hyperliquid, and Sui. This aggressive push suggests that fund managers are betting big on an “altcoin season” and are scrambling to have the infrastructure ready for mainstream investors.
Breaking Down the New Strategy Funds
This filing represents one of the most comprehensive expansions of crypto investment products to date. Submitted on December 30, the documents outline a strategic approach to offer exposure to tokens that go far beyond Bitcoin and Ethereum. Bitwise is clearly looking to dominate the market for diversified crypto exposure before competitors catch up.
The proposed lineup covers a wide spectrum of the blockchain ecosystem. The specific assets targeted in these 11 new ETF applications include:
- Aave (AAVE): A leader in decentralized lending.
- Uniswap (UNI): The dominant decentralized exchange.
- Zcash (ZEC): A pioneer in privacy-focused transactions.
- Canton: An emerging network attracting institutional attention.
- Ethena (ENA): A synthetic dollar protocol.
- Hyperliquid (HYPE): A high-performance decentralized exchange platform.
- NEAR Protocol (NEAR): A user-friendly Layer 1 blockchain.
- Starknet (STRK): A scaling solution for Ethereum.
- Sui (SUI): A high-speed Layer 1 competitor.
- Bittensor (TAO): The leading decentralized AI network.
- TRON (TRX): A major platform for stablecoin transactions.
These funds are not standard spot ETFs. Instead, they utilize a “Strategy ETF” structure. The filings indicate that these funds will invest approximately 60% of their assets directly into the underlying cryptocurrency.
The remaining 40% will be allocated differently to manage risk and meet regulatory standards. This portion will be invested in other Exchange Traded Products (ETPs) that track these assets or utilized in derivatives. This hybrid model allows Bitwise to strike a balance between direct price exposure and the regulatory safety nets that the SEC often prefers.
Bitwise crypto strategy etf filing documents on desk concept
The Privacy and AI Crypto Narrative
Two specific assets in this filing highlight emerging trends that investors are watching closely: Artificial Intelligence and Privacy. The inclusion of a Bittensor (TAO) Strategy ETF is particularly notable. It arrives at a time when the intersection of AI and blockchain is becoming the hottest narrative in technology investing.
Bittensor has gained massive traction as a decentralized marketplace for machine learning. By filing for a TAO-linked fund, Bitwise is positioning itself to capture institutional demand for AI-related crypto assets. This move mirrors recent actions by Grayscale, another crypto giant. Grayscale recently filed paperwork intended to convert its existing Bittensor Trust into a full-fledged spot ETF.
Institutional interest is rapidly shifting toward functional utility tokens like TAO that solve real-world technology problems.
On the privacy front, the inclusion of Zcash (ZEC) is a bold regulatory play. Privacy coins have historically faced scrutiny from regulators due to their anonymous nature. However, the demand for financial privacy remains high. Grayscale has also filed notice to convert its Zcash Trust into a spot ETF, signaling that issuers believe the regulatory climate may be softening enough to allow these privacy-focused assets on major exchanges.
Deep Dive into the Altcoin Selection
The selection of assets like Sui and Hyperliquid shows that Bitwise is paying attention to on-chain performance metrics. Sui has been one of the top-performing blockchains over the last year, boasting incredibly fast transaction speeds and growing developer activity.
Previous filings by the issuer had already hinted at a dedicated spot fund for the SUI token. This new strategy ETF application reinforces their conviction in the asset. The plan aims to provide investors with robust exposure to the SUI ecosystem, which is increasingly viewed as a viable competitor to Solana.
Hyperliquid (HYPE) is another fascinating addition. It is a newer entrant compared to veterans like TRON or Uniswap. Hyperliquid operates as a decentralized perpetual exchange and has seen explosive growth in trading volume.
Experts noted that the amendment in Bitwise filings regarding a Hyperliquid ETF suggests they see immense potential in decentralized derivatives trading. By wrapping these complex assets into an ETF wrapper, Bitwise removes the technical barrier of entry for older investors who do not want to manage private keys or navigate complex decentralized exchanges.
Market Impact and Future Outlook
This filing spree is not an isolated event but part of a larger, aggressive growth strategy by Bitwise. The firm has been relentless in 2024 and heading into 2025. In October, they rolled out the first U.S. spot Solana ETF application, which was quickly followed by filings for XRP and Dogecoin funds in November.
The timeline for these 11 new funds is intriguing. The filings indicate an effective date of March 16, 2026. While this date seems distant, it likely serves as a placeholder to allow for an extended dialogue with the SEC without facing automatic deadlines. However, the industry standard for many strategy funds can see approvals move faster depending on the regulatory environment.
Bitwise executives appear confident that the political and economic winds are shifting in favor of crypto. Matt Hougan, the company’s Chief Investment Officer, has publicly expressed a bullish outlook. He suggested that Bitcoin and the broader market might break their usual four-year cycle patterns.
Hougan believes the market is primed to reach new all-time highs as regulatory clarity improves in the coming years.
If approved, these 11 ETFs would provide the most diverse menu of crypto investments available on the U.S. stock market. It would allow a financial advisor to build a diversified portfolio of DeFi, AI, L1 blockchains, and privacy coins for their clients with a single click. This level of access was unimaginable just two years ago and marks a maturing of the asset class.
