Bitwise Tops $1 Billion in AUM, Says Crypto is More Than Just Bitcoin

Bitwise Asset Management, a digital asset index fund provider, surpassed $1 billion in assets under management, the company announced Tuesday.  Bitwise launched the Bitwise 10 Crypto Index Fund (ticker BITW), the largest digital asset index fund in the world, in 2017. […]

article-image

Bitwise CEO Hunter Horsley, Via CNBC

share

key takeaways

  • Bitwise manages the largest digital asset index fund in the world, the Bitwise 10 Crypto Index Fund
  • Bitwise success shows that investors want exposure to more than just Bitcoin

Bitwise Asset Management, a digital asset index fund provider, surpassed $1 billion in assets under management, the company announced Tuesday. 

Bitwise launched the Bitwise 10 Crypto Index Fund (ticker BITW), the largest digital asset index fund in the world, in 2017. The fund now has more than $900 million in AUM. 

BITW differs from bitcoin-only funds, such as Grayscale’s Bitcoin Trust, because it is diversified across a variety of digital assets. More than 20 percent of BITW’s holdings are allocated to alternative digital assets, including ethereum and litecoin.

Digital assets other than bitcoin and ether, collectively dubbed “alts,” behave as higher beta crypto assets. Alts have greater volatility than bitcoin, and tend to outperform in extreme upswings. It’s a similar relationship that risky technology stocks have to more stable S&P 500 companies.

Crypto exchange FTX’s Altcoin Index Perpetual, which tracks a basket of alts, is up 180 percent year-to-date compared to bitcoin’s 60 percent rise. If the bull run in digital assets continues, outperformance in alts may tempt investors to allocate to products like BITW that are exposed to more than just bitcoin.

“In many cases, it took months, or even years, of education before investors were ready to make their first allocation to crypto,” said Matt Hougan, chief investment officer at Bitwise. “But the growth of DeFi and the growth of interest in ethereum has really been remarkable over the last six months, and you’re now seeing people who recognize that crypto is more than just Bitcoin.”

Bitwise recently launched the world’s first decentralized finance index fund, betting that high net worth investors will want exposure to the rapidly growing industry that may fundamentally change large parts of the legacy financial system. 

“People know that the legacy financial system is ripe for disruption,” said Hougan, “they see the volumes and fees being generated by DeFi apps and they want exposure to that growth.”

Tags

upcoming event

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

upcoming event

MON - WED, SEPT. 11 - 13, 2023

2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

recent research

Solana Q2 Update

Research

While most alternative Layer 1 networks, have seen lackluster usage since the market downturn, Solana has continued to show significant potential throughout 2023.

/

article-image

Berenberg Capital Markets’ Mark Palmer cuts price target of company’s shares by 30% after SEC allegations

article-image

The temporary restraining order is necessary because the defendants “knew that their conduct…was illegal,” the SEC says

article-image

Decentralization needs to do some chest compressions on TV if we want to watch more Succession

article-image

The European consumer group noted Elon Musk’s changing of the Twitter symbol to the dogecoin logo in its crypto complaint to the EU

article-image

Arbitrum failed to settle on Ethereum after a pre-programmed “fail-safe” meant a critical node didn’t receive enough ETH for gas fees

article-image

A Commonwealth Bank executive said 24-hour holds and limits on outbound payments to crypto exchanges will help decrease the number of scams