The new funds join the Bitwise DeFi Crypto Index Fund, extending Bitwise’s commitment to help professional investors access the DeFi space.
Bitwise Asset Management, the world’s largest crypto index fund manager with over $1.0 billion in AUM,¹ today announced the launch of the Bitwise Uniswap (UNI) Fund and the Bitwise Aave (AAVE) Fund. These two new strategies join the Bitwise DeFi Crypto Index Fund in simplifying access to the emerging decentralized finance (DeFi) space for professional investors.
“There is growing demand from financial advisors, hedge funds, institutions, and other professional investors for exposure to the fast-growing DeFi markets,” said Matt Hougan, CIO of Bitwise. “Uniswap and Aave are the two largest DeFi protocols in our DeFi index, and are the largest decentralized exchange and decentralized lending protocol in the world, respectively. Bitwise’s vision is to make the opportunities emerging in crypto more accessible, and we’re thrilled to take another step with the world’s first Uniswap and Aave investment funds.”
The Bitwise Uniswap Fund will invest directly in UNI, the native token of the Uniswap protocol, the leading decentralized crypto exchange. Uniswap’s transparent, peer-to-peer trading system has proven to be a material alternative to conventional exchanges (such as Coinbase). In June 2021 alone, Uniswap handled more than $60 billion in trading volume, up 6,000% year over year.
The Bitwise Aave Fund will invest directly in AAVE, the native token of the Aave protocol, the leading decentralized and non-custodial lending and borrowing protocol. As a transparent, programmable, peer-to-peer alternative to conventional loan providers, Aave has seen remarkable adoption: Total outstanding loans on Aave’s platform grew from $93.7 million in July 2020 to $6.92 billion in July 2021, up over 70x year over year.²
Bitwise manages a growing suite of investment funds, including the world’s first and largest crypto index fund, the Bitwise 10 Crypto Index Fund (OTCQX: BITW), that aim to simplify access to the full range of opportunities in the crypto space. The UNI and AAVE funds will form part of a growing suite of DeFi-focused products, including the Bitwise DeFi Crypto Index Fund, which launched in February 2021 as the first DeFi index fund in a traditional fund format. 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.
The new funds’ custodian is Anchorage Digital Bank, N.A., which became the first federally chartered digital asset bank in U.S. history in January 2021, and today secures billions of dollars in cryptoassets.
(1) As of July 26, 2021.
(2) From July 26, 2020 to July 26, 2021. Data from Ethereum ETL and CoinGecko, available at TheBlockCrypto.com.
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 the 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.
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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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