Bitwise Surpasses $100 Million In Assets Under Management; Rising Demand From Hedge Funds, Advisors
San Francisco • October 28, 2020
Diversified Bitwise 10 Crypto Index Fund saw the majority of inflows, as investors bet on both bitcoin and the crypto space as a whole.
Bitwise Asset Management, a leading provider of cryptoasset index funds to professional investors, announced today that it recently surpassed $100 million in assets under management (AUM).
The majority of demand has been for its Bitwise 10 Crypto Index Fund, which tracks the 10 largest cryptoassets—including Bitcoin, Ethereum, and Litecoin—that historically comprise over 80% of the entire crypto asset class. The fund is currently available as a private placement; shares are expected to start publicly trading later this quarter.
“2020 is the year crypto crossed the chasm for professional investors,” said Matt Hougan, Chief Investment Officer for Bitwise. “PayPal’s decision to embrace crypto last week was groundbreaking. The challenges that historically kept professional investors on the sidelines—including regulatory concerns, custody, reputation, and understanding—are rapidly being swept aside. Meanwhile, the potential impact crypto can have on portfolios from a risk-adjusted basis, amid the current macro backdrop, is making it hard to ignore.”
According to the Bitwise/ETF Trends Release 2020 Benchmark Survey Of Financial Advisor Attitudes Toward Cryptoassets, the number of financial advisors who expected to allocate to the space is set to double this year, from 6% to 13%.
“When Bitwise started in 2017, most investors in the space were individuals,” said Hunter Horsley, Bitwise’s Chief Executive Officer. “Today, we see the greatest demand from RIAs, financial advisors, multifamily offices, and hedge funds. The recent entrance of firms like PayPal, Square, Fidelity, CME, Nomura, Facebook, and others has convinced many who were previously cautious that it’s time to reevaluate.”
Bitwise specializes in educating and supporting professional investors, with a senior team from firms like BlackRock, Fidelity, Eaton Vance, Wealthfront, Facebook, J.P. Morgan, and iCapital. In addition to the Bitwise 10 Crypto Index Fund, Bitwise provides funds offering stand-alone exposure to bitcoin and stand-alone exposure to Ethereum. The bitcoin and ethereum funds are today available to accredited investors as private placements.
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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,” or “anticipates” or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans, intentions or 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. Forward-looking statements in this offering circular include, but are not limited to, statements about our expectations regarding the effects of the conversion and the intended initiation of quotations of the interests in the fund on an over-the-counter market. Such forward-looking statements are subject to numerous risks and are necessarily dependent on assumptions that may be incorrect or imprecise and may not be realized. 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.
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 advisors 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 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 an investment company under the Investment Company Act of 1940, as amended, and Bitwise believes that such registration is not required.
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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