Bitwise enters the altcoin ETF race with 11 new applications focusing on the DeFi ecosystem

Leading asset management firm Bitwise announced on 2025-12-30 that it has submitted 11 innovative ETF applications to the SEC, expanding its investment scope from mainstream crypto assets like Bitcoin and Ethereum to the altcoin sector. This move marks a new phase of expansion in the cryptocurrency ETF market and reflects the growing interest of traditional financial institutions in the altcoin ecosystem.

Surge in Altcoin ETF Applications, Regulatory Framework Accelerating Development

Bitwise’s 11 altcoin ETF applications come at a time of industry-wide explosion. According to the general listing standards established by the SEC in September 2025 for commodity trusts, digital assets that are traded on regulated markets and have sufficient futures history or existing ETF support are significantly easier to approve.

This regulatory framework optimization has ignited market enthusiasm, with over 126 altcoin ETF applications currently awaiting approval, covering sectors such as Solana, XRP, emerging DeFi tokens, and more. Bitwise’s proposals are emerging in this wave, closely aligned with overall market trends.

Strategic Portfolio Design, 60/40 Golden Ratio to Reduce Risks

The submitted N-1A form by Bitwise discloses an innovative investment strategy. All 11 altcoin ETFs follow a structured allocation plan: 60% of assets are invested directly in underlying cryptocurrencies, while 40% are invested in exchange-traded products (ETPs), with the potential to enhance exposure through derivatives.

The scope of altcoin assets covered includes Aave, Ethena (ENA), Hyperliquid (HYPE), NEAR, Starknet (STRK), Sui, Bittensor (TAO), Tron (TRX), Uniswap (UNI), Zcash (ZEC), and Canton (CC), totaling 11 projects. This 60/40 allocation provides diversified risk exposure, allowing investors to avoid the risks of direct ownership. Trading codes and fee ratios will be announced after SEC review.

Institutional Custody Support, Connecting Traditional Finance and DeFi Ecosystem

To enhance institutional-level security, Coinbase Custody is expected to serve as custodian for multiple ETFs, removing significant concerns for traditional financial institutions entering the altcoin space. Institutional investors are often cautious about directly holding crypto assets, and the introduction of trusted third-party custody services greatly lowers the market entry barrier.

In recent months, the SEC has approved XRP ETF applications submitted by Bitwise and other institutions, and has continued to review projects like Solana and Litecoin. These precedents further boost market confidence in the approval prospects of altcoin ETFs.

From Altcoins to Mainstream Finance, Billions of Dollars in Capital Ready to Flow

As U.S. regulation of cryptocurrencies matures, altcoin ETFs are expected to release billions of dollars of institutional capital. This development will directly connect traditional finance with the DeFi ecosystem, promoting the mainstream adoption of altcoin assets.

Market observers believe that once Bitwise’s applications are approved, their scale growth potential could rival that of the existing spot Bitcoin ETF exceeding $100 billion. Although altcoins face challenges such as volatility and regulatory uncertainty, this wave of applications signifies an important milestone in the institutionalization and normalization of the digital asset market.

Bitwise’s bold deployment highlights an accelerated shift toward mainstream adoption, and approval of altcoin ETFs will mark a new era for traditional investors entering the DeFi world.