Bitwise Asset Management, the largest crypto index fund manager in America, announced today the historic approval of the NYSE’s 19b-4 filing for Bitwise’s first spot bitcoin ETF. Bitwise intends for the fund to begin trading once the SEC declares its Amended S-1 Registration Statement effective.
A pioneer in crypto ETFs, Bitwise today offers a suite of five crypto-linked ETFs, which would grow to six with the addition of the spot bitcoin ETF, along with 13 other crypto investment products. The firm has worked continuously to bring a spot bitcoin ETF to market since it first filed for one in 2018.
“The ability to access bitcoin through an ETF will be a breakthrough for investors, particularly financial professionals,” said Bitwise CEO Hunter Horsley. “We’re proud to have done the work over the last several years to help bring about this historic moment.”
Added Horsley: “Over the past six years, thousands of investors have chosen Bitwise as their partner in the space because of our broad suite of products, specialist expertise, and timely insights. With the approval of this 19b-4, I’m excited for the potential to expand the ways investors can access the opportunities in the space.”
Founded in 2017, Bitwise partners with more than 1,800 advisor teams, RIAs, family offices, and institutions to serve tens of thousands of investors.
"This is a big moment,” said Bitwise CIO Matt Hougan. “There will now be a ‘before ETF’ and an ‘after ETF’ era for crypto.”
Over its 14-year history, bitcoin has gone from a novel experiment to an asset used by more than 100 million people worldwide. According to a recent Bitwise study, allocating 2.5% of a traditional 60/40 portfolio to bitcoin would have improved a portfolio’s cumulative and risk-adjusted returns in 100% of three-year periods, 94% of two-year periods, and 70% of one-year periods since 2014, assuming the position is rebalanced quarterly.¹
Pending the approval of Bitwise’s S-1 filing for the spot bitcoin ETF, the fund will invest directly in bitcoin, whose underlying blockchain technology has begun to reshape the ways people store and transfer value. Adoption of bitcoin has grown rapidly, with the crypto asset increasingly being used for wealth preservation, remittances, online payments, micropayments, and global enterprise. The launch of spot bitcoin ETFs in the U.S. marks another in a series of recent milestones for bitcoin, whose maturation has occurred alongside continued growth in developer activity, market structure, institutional adoption, and real-world applications.
For more information, visit www.bitwiseinvestments.com.
(1) “Bitcoin’s Role in a Traditional Portfolio,” published in August 2023, is available at https://bitwiseinvestments.com/crypto-market-insights/bitcoins-role-in-a-traditional-portfolio.
Risks and Important Information
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 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.
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