Cyber Hornet Seeks Approval for S&P Crypto 10 ETF Amid Competition

Highlights:

• Cyber Hornet’s S&P Crypto 10 ETF offers exposure to the top 10 cryptocurrencies by market cap.
• The ETF provides investors with a diversified approach to Bitcoin, Ethereum, and other major tokens.
• The race for crypto basket ETFs is intensifying, with more firms entering the market.

Cyber Hornet has submitted its application to the Securities and Exchange Commission (SEC) to register the S&P Crypto 10 ETF (CTX). This marks a significant breakthrough since it could be the first S&P-linked spot ETF providing a wide range of exposure to leading cryptocurrencies. The ETF seeks to track the performance of the ten largest cryptocurrencies by market capitalization as defined by the S&P Cryptocurrency Broad Digital Asset Index.

Diversified Exposure to Leading Cryptos

The S&P Crypto 10 ETF will be aimed at delivering significant exposure to Ethereum (ETH) and Bitcoin (BTC). Bitcoin comprises 69% of the fund composition, with Ethereum accounting for 14%. The remaining 17% will be allocated among various other large cryptocurrencies, such as XRP, Solana, Binance Coin, TRON, and Cardano. This diversified strategy provides an equal exposure to the largest and most established digital assets within the crypto market.

Although Bitcoin and Ethereum control the digital currency category, the rest of the crypto market is crucial to the S&P Crypto 10 ETF plan. XRP, which has a 5% share, and Binance Coin, Solana, and others are there to reflect the market performance of some of the high-ranking assets.

Bitcoin’s Dominance Drives ETF Strategy

The dominance of Bitcoin in the cryptocurrency market is evident as its market capitalization exceeds $1.5 trillion. This is a wide margin compared to Ethereum, of $356 billion. BTC now has a dominant position of 59%, and Ethereum has 11%. The rest of the assets pool together to form a 29% market share. The S&P Crypto 10 ETF consequently reflects this dominance, with BTC experiencing allocation towards other assets.

The popularity of the S&P Crypto 10 ETF is further supported by the dominance of Bitcoin and increasing institutional attention to digital assets. Bitcoin, being the largest and most established cryptocurrency, is considered the anchor asset in most crypto investment strategies to provide stability in unstable markets.

Crypto ETF Landscape Heats Up

The application of the S&P Crypto 10 ETF is against the backdrop of the increasing competition in crypto ETFs. According to Bloomberg ETF analyst Eric Balchunas, the race is rising on crypto-basket ETFs. Issuers are competing, and several companies are now offering diversified spot-exposure funds, such as the CTX ETF of Cyber Hornet.

The introduction of Cyber Hornet is relevant as it brings a diversified approach to crypto ETFs. This indicates a risk aversion strategy, where exposure to a variety of cryptocurrencies is diversified. The emergence of crypto ETFs enables investors to invest in the market with one investment, and they do not need to handle assets individually. Furthermore, this has seen a lot of investors taking an interest in the regulatory control and transparency that ETFs provide. As a result, it makes them an attractive substitute for direct cryptocurrency holdings.

There are also other key players that are seeking approval. Grayscale, for instance, has sought SEC registration to convert its NEAR Trust into a spot ETF. Moreover, ARK Investment Management has submitted two ETF applications, which seek to track the CoinDesk Crypto 20 Index.