Bitwise Asset Management has announced that NYSE Arca has filed a Form 19b-4 to uplist the $1.3 billion Bitwise 10 Crypto Index Fund (BITW) as an ETP, joining a growing trend of crypto asset managers seeking to convert investment vehicles into exchange-traded structures.

“Bitwise believes that ETPs are among the most efficient, convenient, and useful vehicles for providing crypto exposure,” Bitwise CEO Hunter Horsley said in the announcement. “We remain committed to converting BITW to an ETP.”

BITW, which launched in November 2017 as the world’s first crypto index fund, provides investors exposure to diversified portfolio of digital assets, with shares currently quoted on the OTCQX Best Market, according to the release.

The current fund holds 10 of the largest cryptocurrencies, with bitcoin comprising 74.8% of the portfolio, followed by Ethereum at 16.2%, and Solana at 4.4%, according to its fund page. The remaining allocations are spread across smaller cryptocurrencies including XRP, Cardano, and Avalanche.

The conversion effort aims to enhance the fund’s efficiency and regulatory protections, according to the announcement. An ETP structure would accept subscriptions and redemptions at net asset value, creating an arbitrage mechanism that could help the fund trade more closely to its underlying value.

The fund currently trades at $52 while having a net asset value of $62, highlighting the premium/discount issues that a conversion is intended to address.

The filing follows Grayscale’s recent move to convert its Digital Large Cap Fund into an ETF structure. Grayscale has already successfully converted its bitcoin and Ethereum trusts into ETFs earlier this year.

Read More: Grayscale Seeks SEC Nod for Multi-Crypto ETF Conversion

BITW currently charges a 2.5% expense ratio and has generated returns of 50.2% over the past month and 108.9% year-to-date in secondary market trading, compared to 30% and 81.8%, respectively, for its underlying crypto index, according to the fund page.

If successful, the conversion would represent another milestone in Bitwise’s efforts to broaden access to cryptocurrency investments through regulated vehicles. The company first registered BITW as a Securities and Exchange Commission reporting company in April 2021, providing additional transparency for investors, the release noted.

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