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Bitwise Asset Management has filed with the U.S. Securities and Exchange Commission (SEC) to launch what could become the first stablecoin tokenization ETF in the country, underscoring the growing intersection of traditional finance and on-chain markets.
According to the Sept. 16 SEC prospectus, the proposed fund named the Bitwise Stablecoin & Tokenization ETF would be structured as an actively managed “40 Act” vehicle under the Investment Company Act of 1940.
Bitwise, which manages more than $15 billion in assets, said the ETF would track its newly developed Stablecoin and Tokenization Index. The goal is to give investors diversified exposure to companies and crypto-linked products that operate across these two rapidly expanding markets.
“This filing highlights the next chapter in bridging Wall Street and blockchain,” said Matt Hougan, Chief Investment Officer at Bitwise, in a statement. “A stablecoin tokenization ETF brings regulated access to sectors that are increasingly core to global finance.”
The proposed stablecoin tokenization ETF is designed around a two-part investment strategy.
The first half of the portfolio which is the “equity sleeve” would allocate up to 50% of assets to 20 to 30 publicly traded companies directly involved in stablecoin issuance, tokenization infrastructure, and payment networks. To mitigate concentration risk, individual holdings would be capped by tiers, with the largest exposure limited to 15%.
The second half of the ETF would consist of crypto-linked exchange-traded products, focusing on blockchain infrastructure and oracle tokens. Up to 5% of assets could be dedicated to oracles, which connect real-world data to blockchain networks. No single holding would exceed 22.5% of the index, and rebalancing would occur quarterly.
Bloomberg ETF analyst Eric Balchunas noted that, given the streamlined SEC process for 40 Act funds, the stablecoin tokenization ETF could debut as early as late November. “A Thanksgiving launch is possible if the review remains on track,” Balchunas wrote on X (formerly Twitter).
The timing of Bitwise’s filing coincides with unprecedented growth in both stablecoins and real-world asset (RWA) tokenization.
According to CoinMetrics, the global stablecoin supply has reached approximately $290 billion, bolstered by the passage of the GENIUS Act in July. The legislation offered long-sought regulatory clarity for stablecoin issuers in the U.S., paving the way for broader adoption.
Meanwhile, tokenized RWAs which include digitized versions of assets such as government bonds, equities, and real estate have surged to about $30 billion in market capitalization. This figure reflects both institutional pilots and increasing retail interest in blockchain-based access to traditional markets.
“Tokenization is not a fringe experiment anymore,” said SEC Chair Paul Atkins during a policy forum in August. “It is an innovation with the potential to modernize market infrastructure while maintaining investor protections.”
For Bitwise, the introduction of a stablecoin tokenization ETF would position the firm ahead of competitors at a time when regulated exposure is in high demand. The product would also directly compete with offerings like Nicholas Wealth’s Crypto Income ETF (BLOX), though none of the existing funds explicitly target the stablecoin and tokenization segments.
Analysts suggest that the launch of a stablecoin tokenization ETF could open new avenues for both institutional and retail investors who want regulated exposure without navigating the complexities of direct crypto holdings.
Bitwise already manages over 20 crypto-focused ETFs, giving it a first-mover advantage in structuring products that appeal to traditional investors while satisfying regulators.
“Stablecoins are now a foundational layer of global liquidity, and tokenization is the logical next step for asset markets,” said Kristin Smith, CEO of the Blockchain Association. “A stablecoin tokenization ETF could give U.S. investors a compliant way to participate in this growth.”
By dividing the fund between equities and crypto-linked products, Bitwise is also seeking to address volatility risks while still maintaining exposure to innovation at the edge of financial markets.
If approved, Bitwise’s stablecoin tokenization ETF would represent a milestone in the mainstreaming of blockchain-based financial products. Its launch could arrive before the end of 2025, potentially setting a precedent for similar funds.
For crypto investors, the development signals deeper integration between regulated markets and blockchain rails. For policymakers, it highlights the growing challenge and opportunity of overseeing assets that blur the lines between traditional finance and decentralized systems.
“The convergence is no longer theoretical,” Hougan added. “Stablecoins and tokenization are becoming central to global markets, and an ETF is the bridge investors have been waiting for.”
