Cryptocurrency fund manager Bitwise has sent in an application for a bitcoin exchange-traded fund (ETF) to the U.S. SEC, providing exposure indirectly through futures contracts.

Cryptocurrency asset management and advisory firm Bitwise has filed a bitcoin ETF application with the United States Securities and Exchange Commission (SEC). This marks yet another firm sending in an ETF application to the SEC.

Bitcoin ETFs keep rolling in

The ETF, called the Bitwise Bitcoin Strategy ETF, “seeks to provide long-term capital appreciation” through futures contracts. It does not invest directly in bitcoin, which it emphasizes strongly. Besides investing in cash-settled futures contracts, it may also invest in pooled investment vehicles and Canadian-listed funds that provide exposure to bitcoin.

Bitwise claims that it created the world’s first cryptocurrency index fund, which is called the Bitwise 10 Crypto Index Fund. In addition, it also has a DeFi crypto index fund and exposure to crypto-focused equities. The fund manager is currently managing over $1.2 billion in crypto assets, having launched in 2017.

Like all other ETF applications, it notes that there are some inherent risks in investing in the crypto market, directly or indirectly. That should not unsettle investors, though, who are well aware by now about the volatility that the market is subject to.

What’s more interesting will be the SEC’s reaction, though that may not come for some time. It has become something of a running gag that the SEC will simply delay the application. Indeed it has done so for the VanEck ETF application multiple times.

All eyes on the SEC and US authorities

But it’s reasonable that the SEC would like time to come up with a regulatory framework to protect investors. Chairman Gary Gensler has been hard at work deliberating the matter with those in high levels of the U.S. government. The developments of the past few months, which include senate testimonies, public statements, and even legislation, indicate that this may happen sooner rather than later.

This is happening as the SEC is currently sitting on top of several ETF applications, which cover bitcoin, Ethereum, and DeFi. Companies that have filed these applications include VanEck, WisdomTree, Goldman Sachs, and several others.

The upcoming months will see the U.S. impose this new regulation. It will be a pivotal move for the market, and it’s clear that most officials want to allow innovation while ensuring investor protection. The U.S. is now quickly catching up with other countries, some of whom have a headstart when it comes to regulation.