Bitwise Offers New Web3 ETF as Some Crypto Funds Rebound

The new fund will invest in up to 40 companies using blockchain technology to reshape the internet

article-image

Hunter Horsley, CEO, Bitwise

share

key takeaways

  • Top holdings in the new fund include Coinbase, Roblox and Equinix
  • The largest blockchain ETF, down roughly 50% year to date, improved to flat returns over the past month

Bitwise Asset Management has launched a Web3 ETF as some of the largest crypto-related funds have shown signs of rebounding despite the ongoing crypto downturn.

The Bitwise Web3 ETF (BWEB) tracks a proprietary index that invests in up to 40 companies whose future growth prospects are directly tied to the development of Web3. More than 85% of the portfolio will be companies directly linked to such themes and business activities, according to the company.

Bitwise CEO Hunter Horsley called crypto “the cornerstone of Web3,” adding that many of the companies in the fund’s portfolio are centering their businesses around blockchain technology.

Top holdings in the ETF are Coinbase, Roblox, Equinix, Meta Platforms (formerly Facebook) and Unity Software. 

“Today’s Web3 companies are not only helping reshape the internet as we know it, but they’re among some of the most disruptive and fastest-growing firms in the world,” Horsley said in a statement. “The Bitwise Web3 ETF seeks to capitalize on this great opportunity by offering investors of innovation a straightforward way to access the space.”

The launch follows SoFi bringing a Web3 ETF (TWEB) to market in August. The fund is down 12.5% since launching but is up 3.9% in the past month. 

BWEB is Bitwise’s second ETF. Its Crypto Industry Innovators ETF (BITQ), which launched in May 2021, has about $64 million in assets under management. Down nearly 67% year to date, BITQ is up about 2% from a month ago.

The Amplify Transformational Data Sharing ETF (BLOK) — the largest blockchain ETF in the US with roughly $500 million in assets under management — has also rebounded of late. 

A few days more than three quarters through the year, BLOK was down about 51% for 2022, as of Tuesday morning. But the fund, which has MicroStrategy, IBM and Accenture as its top holdings, has returned 0.1% in the last month.

The ProShares Bitcoin Strategy ETF, which became the first in the US to invest primarily in bitcoin futures upon its launch last October, is up more than 8% in the past 30 days despite year-to-date returns of -57%.

In the last month, bitcoin (BTC) is up 1.3%, while ether (ETH) is down 13.4%. BTC and ETH have each fallen by roughly 60% from 12 months ago. 

Dave Nadig, a financial futurist at VettaFi, said the price of bitcoin and ether should be somewhat disconnected from the “pick and shovel” plays represented by equity funds focused on crypto. He added that the crypto ecosystem has shown resilience in recent months.  

“While this may have been a crypto winter, there are a lot of signs that this is just setting the stage for the next crypto spring,” Nadig told Blockworks.

“Blockchain tech isn’t going away, and the shakeout of hyperbole is actually a positive long term for the industry,” he said.

Other funds not yet showing positive returns are at least trimming losses of late.

The Siren Nasdaq NexGen Economy ETF (BLCN) and the First Trust Indxx Innovative Transaction & Process ETF (LEGR) are down 46% and 27%, respectively, so far in 2022. But BLCN is down 8.5% in the past month, while LEGR is down 2.8% over that span.

Overall, digital asset investment products, including ETFs, tallied a third straight week of inflows last week, according to CoinShares, with roughly $10 million entering such products in that period.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (19).png

Research

Suilend has grown into the top money market and liquid staking provider on Sui. STEAMM, Suilend’s Superfluid AMM, presents a compelling avenue for growing market share within Sui’s DEX landscape and revenue generation for the protocol. Suilend’s multi-product suite position it well for owning market share across key verticals. While current metrics across the Sui ecosystem are likely inflated due to Sui Foundation incentive programs, SEND trades at amongst the lowest multiples in the lend/borrow sector, suggesting that a bull case for continued growth in the ecosystem may be mispriced.

article-image

The stablecoin issuer now plans to offer 32 million Class A common stock shares at a price of up to $28 each

article-image

Let’s go whale watching, Bitcoin style: Investigating the mysterious “12ib7” wallet now worth $3.2 billion

article-image

Bitget’s L2 is undergoing a leadership change and will be helmed by Colin Goltra, formerly the blockchain’s chief growth officer

article-image

The funding was spread out across 61 rounds, a slight dip in both number of rounds and total funding in comparison to other months

article-image

Why is it controversial to say things are better than they used to be?

article-image

Wallchain could make influencer ROI more measurable for Solana businesses