BITB Crosses $2 Billion in Assets, Generates Largest Inflows of Any Crypto Specialist¹
San Francisco • March 11, 2024
Bitwise Asset Management, the largest crypto index fund manager in America,² announced today that the Bitwise Bitcoin ETF (BITB) surpassed $2 billion in assets under management two months after the fund’s launch.
“Bitcoin ETFs have completely changed the conversation for investors,” said Bitwise CEO Hunter Horsley. “It has been akin to an IPO moment for bitcoin. Investors of all kinds now have access and are engaging: individuals, RIAs, wealth teams, family offices, hedge funds, asset managers, and more. We’ve been thrilled that so many investors have wanted to work with Bitwise as a specialist and partner in this novel asset class.”
Since the historic debut of spot bitcoin ETFs in the U.S. on January 11, BITB has generated the largest net inflows among crypto specialist bitcoin ETF providers.³ In February, BITB became one of the top 25 fastest ETFs in history to reach the $1 billion AUM milestone.
The Bitwise Bitcoin ETF has attracted investors for a variety of reasons, ranging from its low cost and high volume to its transparency and commitment to the crypto ecosystem. BITB:
Is the lowest-cost spot bitcoin ETF among those with at least $1 billion in AUM;
Has had average daily trading volume of $91 million;⁴
Was the first and only bitcoin ETF in the U.S. to publish the public bitcoin addresses of its holdings, providing blockchain-enabled transparency;
Supports the future health of the bitcoin blockchain by donating 10% of its profits to organizations that fund bitcoin open-source development; and
Is backed by the specialist expertise of Bitwise, reinforced by the firm’s more than six-year track record in crypto.
Today, over 3,000 wealth teams, RIAs, family offices, and institutional clients trust Bitwise as their specialist partner in the crypto space. Bitwise’s national team of crypto experts is available to meet with investment professionals any time and in person.
Bitwise’s other product offerings include five other crypto-themed ETFs, the world’s largest crypto index fund, private placement funds, alpha solutions, and separately managed account (SMA) solutions. More information can be found at www.bitwiseinvestments.com.
For more information on BITB, and to read the fund’s prospectus, visit BITBetf.com/welcome.
(1) Of the 10 spot bitcoin ETF issuers, three have businesses devoted solely to crypto: Bitwise, Valkyrie, and Grayscale. As of March 8, 2024, Bitwise has experienced net inflows of $1.35 billion, Valkyrie has experienced net inflows of $264 million, and Grayscale has experienced net outflows of more than $10 billion. (Source: Bloomberg)
(2) By fund AUM based on company public filings as of March 8, 2024.
(3) $1.35 billion as of March 8, 2024.
(4) As of March 8, 2024.
Risks and Important Information
The fund is subject to significant risk. The fund is subject to heightened volatility. An investor may lose all their money. The fund is not suitable for all investors.
This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit BITBetf.com/welcome.
The Bitwise Bitcoin ETF (BITB) (the “Fund”) is not an investment company registered under the Investment Company Act of 1940 (the “1940 Act”) and is not subject to regulation under the Commodity Exchange Act of 1936 (the “CEA”). As a result, shareholders of BITB do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act or the protections afforded by the CEA.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The NAV may not always correspond to the market price of bitcoin and, as a result, Creation Units may be created or redeemed at a value that is different from the market price of the Shares. Authorized Participants’ buying and selling activity associated with the creation and redemption of Creation Units may adversely affect an investment in the Shares.
The amount of bitcoin represented by a Share will continue to be reduced during the life of the Fund due to the transfer of the Fund’s bitcoin to pay for the Sponsor’s management fee, and to pay for litigation expenses or other extraordinary expenses. This dynamic will occur irrespective of whether the trading price of the Shares rises or falls in response to changes in the price of bitcoin.
There is no guarantee or assurance that the Fund’s methodology will result in the Fund achieving positive investment returns or outperforming other investment products.
Investors may choose to use the Fund as a means of investing indirectly in bitcoin. Because the value of the Shares is correlated with the value of the bitcoin held by the Fund, it is important to understand the investment attributes of, and the market for, bitcoin.
Bitcoin Risk. There are significant risks and hazards inherent in the bitcoin market that may cause the price of bitcoin to fluctuate widely. The Fund’s bitcoin may be subject to loss, damage, theft or restriction on access. Investors considering a purchase of Shares should carefully consider how much of their total assets should be exposed to the bitcoin market, and should fully understand, be willing to assume, and have the financial resources necessary to withstand, the risks involved in the Fund’s investment strategy.
Liquidity Risk. The market for bitcoin is still developing and may be subject to periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the desired price. Possible illiquid markets may exacerbate losses or increase the variability between the Fund’s NAV and its market price. The lack of active trading markets for the Shares may result in losses on investors’ investments at the time of disposition of Shares.
Regulatory Risk. Future and current regulations by a U.S. or foreign government or quasi-governmental agency could have an adverse effect on an investment in the Fund.
Blockchain Technology Risk. Certain of the Fund’s investments may be subject to the risks associated with investing in blockchain technology. The risks associated with blockchain technology may not fully emerge until the technology is widely used. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Because blockchain technology systems may operate across many national boundaries and regulatory jurisdictions, it is possible that blockchain technology may be subject to widespread and inconsistent regulation.
Nondiversification Risk. The Fund is nondiversified and may hold a smaller number of portfolio securities than many other products. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers.
Recency Risk. The Fund is recently organized, giving prospective investors a limited track record on which to base their investment decision. If the Fund is not profitable, the Fund may terminate and liquidate at a time that is disadvantageous to Shareholders.
Bitwise Investment Advisers, LLC serves as the sponsor of the Fund. Foreside Fund Services, LLC serves as the Marketing Agent for BITB, and is not affiliated with Bitwise Investment Advisers, LLC, Bitwise, or any of its affiliates.
About Bitwise
Bitwise Asset Management is the largest crypto index fund manager in America. Thousands of financial advisors, family offices, and institutional investors partner with Bitwise to understand and access the opportunities in crypto. For six years, Bitwise has established a track record of excellence managing a broad suite of index and active solutions across ETFs, separately managed accounts, private funds, and hedge fund strategies. Bitwise is known for providing unparalleled client support through expert research and commentary, its nationwide client team of crypto specialists, and its deep access to the crypto ecosystem. The Bitwise team of more than 60 professionals combines expertise in technology and asset management with backgrounds including BlackRock, Millennium, ETF.com, Meta, Google, and the U.S. Attorney’s Office. Bitwise is backed by leading institutional investors and has been profiled in Institutional Investor, Barron’s, Bloomberg, and The Wall Street Journal. It has offices in San Francisco and New York. For more information, visit www.bitwiseinvestments.com.
