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Bitwise Files for 11 Crypto Strategy ETFs Targeting TAO and ZEC

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Bitwise files for 11 crypto strategy ETFs including TAO, ZEC, and AAVE. Discover how the SEC filing and decentralized AI trends are reshaping crypto investments.

The era of the 'Bitcoin-only' ETF is coming to an end. Crypto asset manager Bitwise just filed with the SEC to introduce 11 different crypto 'strategy' ETFs, signaling a massive expansion into the altcoin market for institutional investors.

Bitwise 11 Crypto Strategy ETFs SEC Filing Breakdown

According to a Tuesday N-1A filing, the proposed funds will utilize a hybrid investment approach. Each ETF plans to invest up to 60% of its assets directly in the underlying token, with the remaining balance allocated to exchange-traded products and derivatives like futures and swaps. The lineup includes well-known assets like AAVE, UNI, and ZEC, alongside emerging tokens such as Hyperliquid (HYPE) and Bittensor (TAO).

Decentralized AI Gains Institutional Traction

The timing isn't accidental. The filing coincided with Grayscale moving to convert its Bittensor trust into an exchange-traded product. Grayscale chairman Barry Silbert noted that decentralized AI is quickly evolving into one of the newest investable themes. TAO, which rewards machine learning contributions, has become a prime target for those seeking AI exposure beyond traditional tech stocks.

These 'strategy' ETFs involve derivative exposure which can lead to higher volatility and different tax implications compared to spot ETFs. Diversify with caution.

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