New 10-Coin Crypto Index ETF Expands Access

Major asset manager launches 10-coin crypto index ETF

In a notable development for digital-asset investing, a major asset manager has converted an existing index fund into a 10-coin exchange-traded fund (ETF), providing investors with simplified access to a diversified basket of cryptocurrencies. The product begins trading with more than $1 billion in assets under management and is positioned to offer both retail and institutional investors a single vehicle to gain exposure across large-cap tokens and a curated set of altcoins.

Constituent tokens

The ETF holds the following digital assets:

• Bitcoin (BTC)
• Ether (ETH)
• XRP
• Solana (SOL)
• Chainlink (LINK)
• Litecoin (LTC)
• Cardano (ADA)
• Avalanche (AVAX)
• Sui (SUI)
• Polkadot (DOT)

By combining widely adopted coins such as Bitcoin and Ethereum with a selection of mid-cap and emerging-layer tokens, the fund aims to balance broad market exposure with selective inclusion of growth-oriented assets.

Why the ETF matters

This launch follows a wave of regulatory approvals for spot bitcoin products and reflects continued institutional interest in packaged crypto products. For many financial advisors and retail investors, ETFs remain the primary vehicle for adding digital-asset exposure to retirement accounts and custodial accounts where direct crypto custody may be impractical or disallowed.

Key investor benefits of the ETF structure include:

• Trading flexibility — ETFs trade on regulated exchanges throughout the market day, enabling intraday execution.
• Tax efficiency — In many jurisdictions an ETF wrapper delivers tax advantages versus direct holdings or mutual fund structures.
• Lower operational overhead — The fund consolidates custody, rebalancing and reporting, reducing the complexity for end investors.

Transition from index fund to ETF

The new ETF was converted from a previously offered index fund that held the same basket of coins. Conversion to an ETF expands permissible trading and custody frameworks for the product, opening access to investors who can only use exchange-traded vehicles, including many retirement plans and tax-advantaged accounts.

Fund design and portfolio rules

Portfolio design details indicate a strong tilt toward major tokens while limiting concentration risk from smaller holdings. The fund allocates 90% of its weight to assets that are already well represented in single-coin market products — notably Bitcoin, Ether, Solana and XRP — while capping the combined weight of all other tokens at 10%.

Other operational features include:

• Monthly rebalancing — The fund rebalances monthly, which is more frequent than the quarterly or semiannual schedules common among traditional ETFs.
• Risk controls — Caps on smaller tokens help manage concentration and liquidity risk.
• Custody and oversight — Professional custody arrangements and governance mechanisms are applied to the underlying digital assets.

Market context and 2025 outlook

As of 2025, the cryptocurrency market has continued its transition from niche speculative trading toward broader institutional adoption and product innovation. Following regulatory milestones in prior years — including formal approvals of spot bitcoin products — asset managers have accelerated the launch of diversified and niche ETFs designed to meet investor demand for efficient, regulated crypto exposure.

Key 2025 market dynamics that give context to this ETF launch:

• Increased institutional allocations: Many asset managers and pension funds have incrementally increased allocation limits to digital assets, favoring regulated ETF wrappers.
• Product innovation: Managers are testing index-based, thematic and multi-asset crypto products to address different risk/return objectives.
• Volatility and liquidity cycles: While major tokens have seen deeper liquidity and trading maturity, smaller tokens remain prone to larger swings during market stress.
• Regulatory evolution: Ongoing clarifications in major jurisdictions continue to influence product availability and structure.

Potential benefits for investors

For investors considering this ETF, the vehicle offers several practical advantages over assembling a multi-token portfolio independently:

• Simplified exposure — One ticker provides instant diversification across ten tokens rather than managing multiple wallets and trades.
• Professional management — The fund uses institutional custody and rebalancing routines to maintain target allocations and compliance.
• Accessibility — ETFs are available through brokerages and retirement accounts that may not permit direct crypto purchases.
• Cost efficiency — Consolidation can reduce cumulative trading fees and simplify tax reporting.

Risks and considerations

Investors should weigh several important risks before allocating to a multi-token crypto ETF. While the fund aims to mitigate certain vulnerabilities, the inherent characteristics of digital assets still apply.

Volatility and drawdowns

Smaller-cap tokens historically exhibit higher volatility than Bitcoin and Ethereum. In periods of market stress, these tokens can underperform materially, magnifying losses for holders of diversified crypto baskets.

Liquidity and market impact

The liquidity of some included tokens can be thin relative to the largest coins, which could amplify price moves during large redemptions or market disruptions. Caps on smaller holdings are intended to reduce systemic impact but do not eliminate liquidity risk.

Regulatory and custody risk

Regulatory changes can affect product availability, taxation and custody models. While ETF structures bring additional oversight, they also depend on the regulatory environment for trading permissions and operational continuity.

Tracking and operational considerations

ETF performance will depend on index methodology, rebalancing frequency and actual execution costs. Monthly rebalancing helps keep allocations current but can generate realized gains or losses that affect after-tax returns for some investors.

What this means for portfolio construction in 2025

For financial advisors and long-term investors, a multi-token crypto ETF can serve several strategic roles in a diversified portfolio:

• Core allocation vehicle — Use as a centralized way to gain exposure to the digital-asset sector without selecting individual tokens.
• Tactical exposure — Adjusting exposure through an ETF can be more efficient than trading multiple underlying coins, particularly in taxable accounts.
• Complement to direct holdings — Investors who prefer direct custody of select coins can still use an ETF for broader diversification or for assets they do not wish to custody personally.

In constructing allocations, investors should consider overall risk tolerance, time horizon and the appropriate balance between major, more liquid tokens and smaller, higher-growth prospects. The ETF’s cap on smaller tokens and monthly rebalancing can help maintain a disciplined exposure profile.

MEXC perspective: how exchanges and platforms adapt

As regulated crypto ETFs expand, centralized and decentralized trading venues continue to adapt by improving liquidity, custody partnerships and reporting standards. For exchanges, these products often act as a bridge that brings fresh capital and a broader investor base to the crypto ecosystem.

At MEXC, our focus remains on providing transparent markets, secure custody solutions and a wide range of tokens for active traders and long-term investors alike. While ETFs provide a streamlined product for certain investor segments, centralized exchanges complement those products by offering spot trading, derivatives, staking and on-chain access for users who prefer direct exposure.

Investor takeaway

The launch of a 10-coin crypto index ETF marks an important step in the industry’s product evolution. By packaging major coins and a curated group of altcoins into a single, regulated vehicle, the product broadens the ways investors can access digital assets — particularly within retirement and advisory channels.

Nevertheless, investors should approach such funds with clear expectations about volatility, concentration limits and the role the product plays within a diversified portfolio. As the crypto market matures through 2025, diversified ETFs will likely become an increasingly common component of investor toolkits, alongside direct spot exposure and other institutional-grade products.

For those evaluating how to incorporate crypto into their portfolios, consider consulting a licensed financial advisor to determine whether a multi-token ETF aligns with your goals, tax situation and risk tolerance.

Disclaimer: This post is a compilation of publicly available information.
MEXC does not verify or guarantee the accuracy of third-party content.
Readers should conduct their own research before making any investment or participation decisions.