Bitwise 10 Crypto Index ETF: SEC Approval of the First Multi-Asset Crypto ETF in 2025

The SEC’s approval of the Bitwise 10 Crypto Index ETF in November 2025 marked a watershed moment for US crypto markets. For the first time, a regulated exchange-traded fund would hold a basket of the top ten cryptocurrencies by market capitalization — not just Bitcoin or Ethereum, but a diversified index spanning multiple digital assets. The approval required NYSE Arca to amend its Rule 8.500-E (Trust Units), a structural change that opens the door for future multi-asset crypto products. Here’s what the approval means for investors, advisers, and the broader regulatory landscape.

Key Takeaways

• First multi-asset crypto ETF approved: The Bitwise 10 Crypto Index ETF holds a basket of the top ten cryptocurrencies by market cap, expanding beyond single-asset Bitcoin and Ethereum ETFs.
• NYSE Arca Rule 8.500-E amended: The Trust Units rule was modified to accommodate multi-crypto basket products, establishing a listing framework for future diversified crypto ETFs.
• Amendment No. 1 addressed SEC staff concerns: The original filing was revised to satisfy Commission feedback on surveillance-sharing, custody, and valuation methodology before the approval order issued.
• Implicit altcoin classification signal: Approval of a basket holding assets beyond BTC and ETH suggests the SEC’s evolving comfort with treating additional tokens as non-securities for ETF purposes.
• Simplified retail access: US investors can gain diversified crypto exposure through traditional brokerage accounts with standard tax reporting.

What Is the Bitwise 10 Crypto Index ETF?

Sponsored by Bitwise Asset Management, this ETF tracks a market-cap-weighted index of the ten largest cryptocurrencies. The index reconstitutes periodically, meaning the specific tokens held shift as market capitalizations change. While the exact composition at any given time depends on market conditions, the basket is designed to capture the largest and most liquid digital assets available.

The product builds on the regulatory infrastructure established by the spot Bitcoin ETFs approved in January 2024 (SEC Release No. 34-99306) and the spot Ethereum ETFs that followed. However, holding ten distinct digital assets introduces additional complexity around custody, valuation, and — critically — the securities classification of each constituent token.

How Did the SEC Review Process Work?

NYSE Arca filed its proposed rule change under Exchange Act Section 19(b)(1) (15 U.S.C. § 78s(b)(1)) and Rule 19b-4 (17 C.F.R. § 240.19b-4), the standard self-regulatory organization (SRO) process for listing new exchange-traded products. The exchange proposed amending Rule 8.500-E, which governs the listing and trading of Trust Units — trust-issued receipts representing interests in a trust holding specified assets.

Rule 8.500-E had previously been applied to single-asset trusts: gold, silver, and the spot Bitcoin and Ethereum ETFs. Listing a multi-crypto basket required amending the rule to address issues unique to diversified digital asset products.

Amendment No. 1, filed in response to SEC staff feedback, revised the original proposal before the Commission issued its approval order. While the full text of the amendment reflects the iterative nature of SRO filings, amendments at this stage typically address the SEC’s core concerns for crypto-related products:

• Surveillance-sharing agreements: The SEC requires comprehensive surveillance-sharing with regulated markets of significant size related to the underlying assets — a standard reinforced by Grayscale Investments, LLC v. SEC, No. 22-1142 (D.C. Cir. 2023), which held that the Commission’s prior inconsistent treatment of Bitcoin futures ETFs and spot ETFs was arbitrary and capricious.
• Multi-asset custody: Holding ten different cryptocurrencies requires custodians capable of securely storing each asset with appropriate segregation — a more complex undertaking than single-asset custody.
• NAV methodology: Calculating net asset value for a basket of assets with varying liquidity profiles requires robust, manipulation-resistant pricing sources for each constituent.

What Does the Rule 8.500-E Amendment Mean for Future Products?

The amendment’s significance extends well beyond the Bitwise product. By adapting the Trust Units framework for multi-asset crypto baskets, NYSE Arca established a template that future sponsors can use to bring additional diversified crypto products to market — thematic baskets (DeFi, Layer-1 protocols), equal-weighted indexes, or sector-specific funds.

This mirrors the historical evolution of commodity ETFs, which progressed from single-metal funds to diversified commodity baskets over time. The regulatory pathway now exists; future filings will still require individual SEC review, but the structural questions have been answered.

What Are the Securities Classification Implications?

The most legally consequential aspect of this approval is what it implies about the classification of altcoins included in the basket. Under the Howey test (SEC v. W.J. Howey Co., 328 U.S. 293 (1946)), an asset is a security if it involves an investment of money in a common enterprise with a reasonable expectation of profits derived from the efforts of others.

Bitcoin and Ethereum have been treated as commodities for ETF purposes, but the regulatory status of other top-ten tokens has been less settled. Some — like XRP — have been the subject of SEC enforcement actions, while others exist in a classification gray zone. By approving an ETF holding these assets in a commodity-trust structure, the Commission implicitly accepted that the basket components need not be registered as securities under the Securities Act of 1933 (15 U.S.C. § 77a et seq.) or treated as securities under the Investment Company Act of 1940 (15 U.S.C. § 80a-1 et seq.).

This aligns with the direction signaled by the SEC’s Crypto Task Force under Chairman Atkins and the concept of “token graduation” — the idea that tokens initially offered as securities may evolve into non-security commodities as their networks decentralize. Pending legislation, including the CLARITY Act, would formalize this framework if enacted.

Practical Implications

Investment advisers registered under the Investment Advisers Act of 1940 (15 U.S.C. § 80b-1 et seq.) should evaluate whether multi-asset crypto ETFs are suitable for client portfolios, considering the diversification benefits against the volatility and classification risks of a broader crypto basket.

Compliance officers at broker-dealers and RIAs should update internal product approval frameworks to account for multi-asset crypto ETFs, including due diligence on custody arrangements and index methodology.

Retail investors benefit from simplified access — a single ticker providing diversified crypto exposure through a standard brokerage account, with Form 1099-B tax reporting rather than the more complex direct-holding reporting under the evolving IRS Form 1099-DA framework.

ETF sponsors now have regulatory precedent for the multi-asset crypto listing structure. The amended Rule 8.500-E provides a roadmap, though each new product must still navigate its own SRO filing and SEC review.

What to Do Now

• Review the Bitwise 10 Crypto Index ETF prospectus for specific holdings, fee structure, and custody arrangements before making allocation decisions.
• Assess whether multi-asset crypto ETF exposure complements or duplicates existing single-asset crypto ETF positions in client portfolios.
• Monitor the SEC Crypto Task Force and CLARITY Act progress for further guidance on altcoin classification — the framework underpinning this ETF’s viability could shift with new rulemaking or legislation.
• Update compliance policies to reflect the availability of regulated multi-asset crypto products and their distinct risk profile compared to single-asset ETFs.

Conclusion

The Bitwise 10 Crypto Index ETF and the underlying NYSE Arca Rule 8.500-E amendment represent a significant maturation of the US crypto investment product landscape. By moving from single-asset to multi-asset structures, the SEC has opened a new chapter in regulated crypto exposure — one with meaningful implications for altcoin classification, portfolio construction, and the competitive dynamics of the ETF industry. As the Commission’s Crypto Task Force continues its work and Congress considers legislation like the CLARITY Act and GENIUS Act, the regulatory framework supporting these products will continue to evolve throughout 2026.

This article is for informational and educational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship. Laws and regulations in the cryptocurrency space change rapidly — consult a qualified attorney for advice specific to your situation and jurisdiction. Seth Goettelman is licensed to practice law in Wisconsin and Florida.