15 Institutions Told Bitwise They Could Add Crypto Buyers

Bitwise disclosed in an SEC filing that 15 institutional intermediaries told the asset manager they could bring additional crypto buyers if regulated, listed investment products become available. The disclosure appears in paperwork Bitwise submitted to the Securities and Exchange Commission in support of a proposed crypto-backed exchange-traded product.

The filing describes the firms as intermediaries that would route client demand into regulated vehicles, allowing end investors who have avoided direct custody of digital assets to participate. It notes the firms would allocate client capital into listed products once custody, compliance and trading arrangements meet their internal standards.

The document does not name the institutions or specify how much capital they might supply. Bitwise identifies the interested parties as managers and advisers that serve private wealth clients, institutional endowments and other pooled investment vehicles.

The filing outlines mechanics for institutional participation: purchases would be executed through regulated exchanges or custodial accounts linked to a listed product rather than through clients taking direct custody of digital assets. Bitwise presented that structure to regulators as the channel the intermediaries described for introducing additional buyers to spot crypto markets.

Multiple asset managers have renewed proposals to list crypto exchange-traded products while the SEC continues to scrutinize market surveillance, custody and fraud-prevention measures. Bitwise, an investment firm focused on crypto products that has previously offered index and fund strategies to institutions and advisers, included the disclosure to show potential institutional demand for regulated offerings that meet traditional custodial, compliance and reporting standards.