Bitwise Asset Management has launched two new cryptocurrency funds, considered one of which solely invests in BTC. The launch “is driven by inbound client interest and investor dissatisfaction with existing options,” the corporate says. The market downturn has additionally given buyers “a unique opportunity to enter the market at prices many thought we’d never see again.”
Two New Funds
Bitwise Asset Management introduced on Wednesday that it has launched two new funds: the Bitwise Bitcoin Fund and the Bitwise Ethereum Fund. The former solely holds BTC and the latter solely ETH, along with “any meaningful hard forks and air drops,” the corporate states. According to the announcement:
The launch of the funds is pushed by inbound shopper curiosity and investor dissatisfaction with present choices, lots of which carry premiums, cost exit charges, have lockups, and/or cost bills to the fund outdoors the said administration charge.
The firm defined that 100 % of the funds are held in chilly storage. Kingdom Trust is the custodian of each funds. Contributions to the bitcoin fund can solely be completed by “U.S. bank wires and BTC,” Bitwise’s web site exhibits.
Starting on Wednesday, two share courses can be found for each funds. The first, aimed toward institutional buyers, has “an all-in expense ratio of 1.0% and a minimum investment of $1 million,” the corporate described. The different has “an all-in expense ratio of 1.5% and a minimum investment of $25,000.” Subscriptions and redemptions are accepted each Wednesday, “with no lockups, withdrawal fees, or performance fees,” the announcement particulars.
Existing Index Funds
The two funds launched on Wednesday are the corporate’s second and third methods, the announcement clarifies, including that the primary is “the broad-market Bitwise 10 Private Index Fund.” This fund tracks the cryptocurrencies within the Bitwise 10 Index, “which is a basket of the largest coins, weighted by 5-year diluted market capitalization and rebalanced monthly,” its web site describes. The constituents of this index are at present BTC, XRP, ETH, XLM, BCH, EOS, LTC, ZEC, XMR, and DASH.
In addition to the Bitwise 10 Index, the corporate has three different indices: the 20 mid cap, the 70 small cap, and the 100 complete market.
Furthermore, the corporate has partnered with Morgan Creek Capital Management to supply buyers one other index fund referred to as Digital Asset Index Fund. According to its web site, this fund “tracks the Morgan Creek Bitwise Digital Asset Index.” Its present constituents are BTC, ETH, BCH, EOS, LTC, ZEC, XMR, DASH, IOTA, and NEM.
Clients Are Interested
Bitwise CEO Hunter Horsley commented:
The 68% drawdown in bitcoin costs this yr has given buyers a singular alternative to enter the market at costs many thought we’d by no means see once more.
He added that, whereas “an ETF [exchange-traded-fund] has not yet been approved, investors and advisors like the fund format because it’s professionally managed and simplifies access to best-in-class custody, trading, reporting, and tax preparation, and allows for the safe capture of events like hard forks and airdrops.”
The firm’s international head of analysis elaborated:
Our shoppers have been including to their positions all through the downturn, and lots of who’ve been following the area for some time are utilizing this chance to lastly are available.
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Images courtesy of Shutterstock, Morgan Creek Capital Management, and Bitwise Asset Management.
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