The new vehicle aims to address investor demand for broader exposure to cryptocurrencies beyond bitcoin.
Bitwise Asset Management, the world’s largest crypto index fund manager with over $1.3 billion in AUM,¹ today announced the launch of the Bitwise 10 ex Bitcoin Crypto Index Fund. The new fund is the world’s first large-cap crypto index fund to provide exposure to the exciting developments taking place in the cryptomarket beyond bitcoin.
Bitcoin’s share of the total market capitalization of the crypto space has fallen from 69% to 42% in the past year, as other assets like Ethereum, Cardano and Solana have grown in size and importance.²
The Bitwise 10 ex Bitcoin Crypto Index Fund holds nine of the 10 cryptocurrencies that make up its $1+ billion³ flagship Bitwise 10 Crypto Index Fund (OTCQX: BITW), excluding bitcoin. These assets range in market capitalization from $8 billion to $427 billion,⁴ and include many of the assets that play a foundational role in the rapidly emerging DeFi, smart contract, and NFT ecosystems.
As of August 31, 2021, the new Bitwise 10 ex Bitcoin Large Cap Crypto Index constituents were⁵:
- Ethereum (ETH): 68.53%
- Cardano (ADA): 15.43%
- Solana (SOL): 5.49%
- Bitcoin Cash (BCH): 2.09%
- Chainlink (LINK): 2.08%
- Litecoin (LTC): 1.97%
- Uniswap (UNI): 1.50%
- Polygon (MATIC): 1.50%
- Stellar (XLM): 1.40%
“This launch is being driven by customer demand,” said Matt Hougan, Chief Investment Officer of Bitwise Asset Management. “Many investors today have exposure to bitcoin but are excited by the dynamic developments taking place around other assets. That’s particularly true for professional investors, who value the utility these assets offer. This new fund allows investors to complement their existing bitcoin exposure with a professionally managed solution that captures other large-cap cryptoassets.”
The fund seeks to track the Bitwise 10 ex Bitcoin Large Cap Crypto Index, which is overseen by the Bitwise Crypto Index Committee with support from the Bitwise Crypto Index Advisory Board, and follows a formal methodology. All assets are subject to suitability screening around liquidity, custody, and regulatory risks, among other topics. The fund is weighted by market cap.
The fund’s assets are custodied with Coinbase Custody Trust Company, LLC, the world’s largest crypto custodian. The new fund is available to accredited investors as a private placement, and comes in two share classes: Investor Shares, which have a $25,000 minimum and charge a 2.5% expense ratio, and Institutional Shares, which have a $1,000,000 minimum and charge a 2.0% expense ratio. Neither share class charges a performance fee.
Bitwise manages a growing suite of investment funds designed to simplify access to the full range of opportunities in the crypto space. These include the Bitwise 10 Crypto Index Fund (OTCQX: BITW), the world’s largest and longest-running crypto index fund; the Bitwise DeFi Crypto Index Fund, the world’s first DeFi index fund; and single-asset crypto funds offering exposure to bitcoin (BTC), Ethereum (ETH), Uniswap (UNI), and Aave (AAVE).
The firm focuses on partnering with investment professionals, and today serves RIAs, financial advisors, multifamily offices, high net worth individuals, hedge funds, and other institutional investors.
¹ Data as of August 31, 2021.
² Source: TradingView. Data as of August 31, 2021.
³ Assets under management. Data as of August 31, 2021.
⁴ Source: CoinGecko. Data as of August 31, 2021.
⁵ Constituents may not add to 100% due to rounding.
Risk Disclosure and Important Information
Carefully consider the investment objectives, risk factors, and charges and expenses of any Bitwise investment product before investing. Investing involves risk, including the possible loss of principal. There is no guarantee or assurance that the methodology used by Bitwise or any of the Bitwise investment products will result in any Bitwise investment product achieving positive investment returns or outperforming other investment products. There is no guarantee or assurance that an investor’s investment objectives will be met through an investment into any Bitwise investment product, and an investor may lose money. Investors in any Bitwise investment product should be willing to accept a high degree of volatility in its price and the possibility of significant losses including the complete loss of the investment. Bitwise investment products involve a substantial degree of risk and are available only to institutional and individual accredited investors.
Certain of the Bitwise investment products may be subject to the risks associated with investing in cryptoassets, including cryptocurrencies and crypto tokens. Because cryptoassets are a new technological innovation with a limited history, they are a highly speculative asset. Future regulatory actions or policies may limit the ability to sell, exchange or use a cryptoasset. The price of a cryptoasset may be impacted by the transactions of a small number of holders of such cryptoasset. Cryptoassets may decline in popularity, acceptance or use, which may impact their price. The technology relating to cryptoassets and blockchain is new and developing. Currently, there are a limited number of publicly listed or quoted companies for which cryptoassets and blockchain technology represent an attributable and significant revenue stream.
The opinions expressed herein are intended to provide insight or education and are not intended as individual investment advice. Bitwise does not represent that this information is accurate and complete and it should not be relied upon as such.
This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any security in particular. Past performance is no guarantee of future results.
Diversification may not protect against market risk. Diversification does not ensure a profit or protect against a loss in a declining market.
Bitwise may attempt to have shares of its investment products quoted on a secondary market. However, there is no guarantee this will be successful. Although the shares of certain Bitwise investment products have been approved for trading on a secondary market, investors in any other Bitwise investment product should not assume that the shares will ever obtain such an approval due to a variety of factors, including questions that regulators such as the SEC, FINRA or other regulatory bodies may have regarding the investment product. Shareholders of such investment product should be prepared to bear the risk of investment in the shares indefinitely.
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Based in San Francisco, Bitwise is one of the largest and fastest-growing crypto asset managers. As of March 31, 2022, Bitwise managed $1.2 billion across an expanding suite of investment solutions. The firm is known for managing the world’s largest crypto index fund (OTCQX: BITW) and pioneering products spanning Bitcoin, Ethereum, DeFi, and crypto-focused equity indexes. Bitwise focuses on partnering with financial advisors and investment professionals to provide quality education and research. The team at Bitwise combines expertise in technology with decades of experience in traditional asset management and indexing, coming from firms including BlackRock, Blackstone, Meta, and Google, as well as the U.S. Attorney’s Office. Bitwise is backed by leading institutional investors and asset management executives, and has been profiled in Institutional Investor, CNBC, Barron’s, Bloomberg, and The Wall Street Journal. For more information, visit www.bitwiseinvestments.com.