Bitwise 10 Crypto Index Fund Becomes First Publicly Traded Crypto Index Fund In U.S.; Ticker 'BITW'
San Francisco • December 9, 2020
Public quotation of shares to begin on OTCQX® today (Dec. 9), making BITW accessible in traditional brokerage accounts
Bitwise Asset Management, a leading crypto fund manager since 2017, announced that shares of the Bitwise 10 Crypto Index Fund (the “Fund”) will begin public quotation on OTCQX® today under the ticker symbol “BITW.”
Shares of the Fund will be tradable through traditional brokerage accounts.
The Fund debuts with approximately $120 million in assets under management.
“The unprecedented events of 2020 have motivated many to invest in crypto for the first time,” said Hunter Horsley, cofounder and CEO of Bitwise Asset Management. “With BITW, investors can now get exposure to Bitcoin, Ethereum, and other cryptocurrencies without trying to pick winners or having to constantly monitor the rapid changes in the space.”
The Bitwise 10 Crypto Index Fund seeks to track the Bitwise 10 Large Cap Crypto Index (the “Index”), a diversified, market-cap-weighted index of the 10 largest cryptoassets. Index constituents are screened for liquidity, custody, and other risks, and rebalanced monthly. They represent approximately 80% of the market. As of Nov. 30, 2020, the Fund held approximately 75% Bitcoin and 13% Ethereum, with the remaining 12% allocated across XRP, Litecoin, Chainlink, Tezos, and other cryptocurrencies.
On a year-to-date basis through Nov. 30, 2020, the Fund was up 184%, outperforming a stand-alone position in Bitcoin.
The Fund structure is a Delaware statutory trust and is audited annually. Coins are held in 100% cold storage with a regulated, insured custodian.
Governance of the Index is overseen by a committee, and guided by an advisory board featuring world-renowned experts in the fields of both index design and cryptoasset analysis. Advisory board members include Srikant Dash, former Global Head of Index Business for Bloomberg, and Managing Director and Global Head of Research & Design and Channel Management at S&P Indices; Spencer Bogart, Partner at Blockchain Capital and one of the first bitcoin analysts on Wall Street; and Matt Hougan, Bitwise CIO, former CEO of ETF.com, and past Editor-in-Chief of the Journal of Indexes, a leading journal on index design.
“Crypto is the best-performing asset class in the world this year, and the outlook for 2021 is strong,” said Matt Hougan, Bitwise’s Chief Investment Officer. “The start of public trading for shares of BITW will make it significantly easier for financial advisers, family offices, individuals, and institutional funds to allocate to the space. We believe the Fund offers a robust, one-stop solution.”
Shares will be quoted on the OTCQX® Best Market, the top-tier market offered by OTC Markets Group Inc., which facilitates the public quotation of approximately 11,000 securities, including the securities of familiar names like Tencent, Roche, the Grayscale Bitcoin Trust (GBTC), and Fannie Mae.
A Form 211 for quotation of the Fund’s shares was recently reviewed by FINRA and verified for compliance with Rule 15c2-11 of the Securities Exchange Act of 1934, enabling trading on OTCQX® to commence. The Fund is eligible for direct registration system (DRS) electronic transfer and settlement through The Depository Trust Company (“DTC”).
The Bitwise 10 Crypto Index Fund is an open-ended, publicly traded statutory trust, not an exchange-traded fund or closed-end fund. Accredited investors may create shares of the Fund at net asset value (NAV) through private placement. Those restricted shares may then become eligible for public sale after a 12-month holding period. The market price for publicly traded shares may trade at a material premium to, or discount to, the NAV per share. For more information, visit www.bitwiseinvestments.com.
Portfolio management of the Fund is overseen by Bitwise COO Teddy Fusaro, who was previously Senior Vice President of New York Life Investment Management, and who before that led portfolio management and trading at IndexIQ, a multibillion-dollar provider of alternative ETFs, including first-to-market hedge fund replication ETFs.
Risk Disclosure and Important Information
*Forward-Looking Statements: This communication includes forward-looking statements. All statements other than statements of historical information provided herein are forward-looking and may contain information about known uncertainties. Some of these forward-looking statements can be identified by the use of forward-looking terminology such as “believes,” “should,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” and “anticipates” and the negative thereof and other variations thereof and comparable terminology, and by discussions of strategy, plans, intentions, and unrealized investment results. These statements involve risks, uncertainties, assumptions, and other factors that may cause actual results or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement contained in this communication, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. We caution the reader that actual results could differ materially from those expected, depending on the outcome of certain factors, including, without limitation, regulatory developments. Readers are cautioned not to place undue reliance on these statements, which speak only as of the date hereof. Past performance is not a guarantee of future results.
This press release is neither an offer to sell nor a solicitation for an offer to buy Interests in any Fund. Any such offer or solicitation will be made solely through definitive offering documents, identified as such, which will contain information about each fund’s investment objectives and terms and conditions of an investment, and may also describe risks and tax information related to an investment therein, and which qualifies in its entirety the information set forth in this Presentation. Prospective investors must not construe the contents of this document as legal, tax, investment, or other advice. Each prospective investor is urged to consult with its own advisers with respect to legal, tax, regulatory, financial, accounting and similar consequences of investing in any Fund. The Units and the Shares (the “Interests”) of the Funds have not been registered under the Securities Act of 1933 (“the Securities Act”), the securities laws of any state, or the securities laws of any other jurisdiction, nor is such registration contemplated. The Interests will be and have been offered and sold under the exemption provided by Section 4(a)(2) of the Securities Act of 1933 and Rule 506 of Regulation D promulgated thereunder and other exemptions of similar import in the laws of the states and jurisdictions where the offering will be made. The offer and sale of the Interests have not been registered with or approved or disapproved by the Securities and Exchange Commission (the “SEC”) or the securities commission or regulatory authority of any state or foreign jurisdiction. The Funds mentioned herein are not registered as investment companies under the Investment Company Act of 1940, as amended, and Bitwise believes that such registration is not required.
The Shares of Funds that are publicly quoted on the OTCQX Best Market are Shares that have become “unrestricted” under Rule 144 of the Securities Act one year and a day subsequent to the date that the Shares were originally issued (although Shares held by affiliates and insiders will be subject to additional restrictions on resales, including restrictions on the number of Shares that may be resold within any three-month period). Shares that have become unrestricted may be quoted on the OTCQX Best Market and may be purchased and sold throughout the trading day through any brokerage account with access to such markets.
No Advice on Investment; Risk of Loss: Prior to making any investment decision in respect of any Fund or Shares of any Fund, each investor must undertake its own independent examination and investigation of the Fund, including the merits and risks involved in an investment in the Fund or Shares, and must base its investment decision—including a determination whether Shares would be a suitable investment for the investor—on such examination and investigation, and must not rely on Bitwise or the Funds in making such investment decision. Prospective investors must not construe the contents of this website as legal, tax, investment, or other advice. Each prospective investor is urged to consult with its own advisors with respect to legal, tax, regulatory, financial, accounting and similar consequences of investing in any Fund, the suitability of the investment for such investor, and other relevant matters concerning an investment in the Fund. This document contains an overview summary of the terms of the Fund. The summary set forth on this document does not purport to be complete, and is qualified in its entirety by reference to the definitive offering documents relating to each Fund and/or in each case, if available in addition, the Fund’s Annual Report or Information Statement and Quarterly Reports, which can be found on www.otcmarkets.com for the Bitwise 10 Crypto Index Fund (Symbol: BITW). Do not place undue reliance on this document.
Information May Change and Be Inaccurate, Incomplete, or Outdated: The information in this document is for discussion purposes only, and no representations or warranties are given or implied. All of the information presented herein is subject to change without notice.*
Based in San Francisco, Bitwise is one of the largest and fastest-growing crypto asset managers, offering both index and active strategies across a wide array of investment vehicles. The firm is known for creating the world’s largest crypto index fund (OTCQX: BITW), a suite of crypto-focused equity and futures ETFs, and investment products that span Bitcoin, Ethereum, DeFi, NFTs, and the Metaverse. 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.
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