The proposed fund tracks the Bitwise Stablecoin and Tokenization Index through two equally weighted sleeves targeting companies and assets poised to benefit from stablecoin adoption and asset tokenization growth.
The equity sleeve allocates up to 50% in companies across five categories: stablecoin issuers, infrastructure providers, payment processors, tokenization exchanges, and stablecoin-oriented retailers.
Companies face tiered weight restrictions based on business exposure levels. Tier 1 firms with substantial stablecoin business receive 15% caps, Tier 2 companies with material exposure get 8% limits, and Tier 3 entities with limited involvement face 3% restrictions.
The fund selects 20 companies from the top two tiers and, if necessary, adds up to 10 Tier 3 companies. The crypto asset sleeve invests in exchange-traded products that provide blockchain infrastructure exposure. The assets must represent at least 1% market share in stablecoins or tokenization.
The fund reserves 5% for oracle tokens that connect blockchains to external systems, with the largest constituent capped at 22.5% of the index. The fund rebalances quarterly and concentrates primarily in information technology companies.
The 40 Act filings typically face shorter regulatory review periods, potentially allowing launches within months rather than years, which is why Balchunas’ prediction regarding a short approval window is plausible.
The filing reflects companies trying to capture the growing institutional interest in the tokenization of real-world assets. This includes stablecoins, which recently reached $287 billion in supply.
