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Bitwise Asset Management has launched two new cryptocurrency funds, one of which only invests in BTC. The launch âis driven by inbound client interest and investor dissatisfaction with existing options,â the company says. The market downturn has also given investors âa unique opportunity to enter the market at prices many thought weâd never see again.â
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Two New Funds
Bitwise Asset Management announced on Wednesday that it has launched two new funds: the Bitwise Bitcoin Fund and the Bitwise Ethereum Fund. The former only holds BTC and the latter only ETH, in addition to âany meaningful hard forks and air drops,â the company states. According to the announcement:
The launch of the funds is driven by inbound client interest and investor dissatisfaction with existing options, many of which carry premiums, charge exit fees, have lockups, and/or charge expenses to the fund outside the stated management fee.
The company explained that 100 percent of the funds are held in cold storage. Kingdom Trust is the custodian of both funds. Contributions to the bitcoin fund can only be done by âU.S. bank wires and BTC,â Bitwiseâs website shows.
Starting on Wednesday, two share classes are available for both funds. The first, aimed at institutional investors, has âan all-in expense ratio of 1.0% and a minimum investment of $1 million,â the company described. The other has âan all-in expense ratio of 1.5% and a minimum investment of $25,000.â Subscriptions and redemptions are accepted every Wednesday, âwith no lockups, withdrawal fees, or performance fees,â the announcement details.
Existing Index Funds
Current constituents of Bitwise 10 Index.
The two funds launched on Wednesday are the companyâs second and third strategies, the announcement clarifies, adding that the first is âthe broad-market Bitwise 10 Private Index Fund.â This fund tracks the cryptocurrencies in the Bitwise 10 Index, âwhich is a basket of the largest coins, weighted by 5-year diluted market capitalization and rebalanced monthly,â its website describes. The constituents of this index are currently BTC, XRP, ETH, XLM, BCH, EOS, LTC, ZEC, XMR, and DASH.
In addition to the Bitwise 10 Index, the company has three other indices: the 20 mid cap, the 70 small cap, and the 100 total market.
Furthermore, the company has partnered with Morgan Creek Capital Management to offer investors another index fund called Digital Asset Index Fund. According to its website, this fund âtracks the Morgan Creek Bitwise Digital Asset Index.â Its current constituents are BTC, ETH, BCH, EOS, LTC, ZEC, XMR, DASH, IOTA, and NEM.
Current constituents of Digital Asset Index Fund.
Clients Are Interested
Bitwise CEO Hunter Horsley commented:
The 68% drawdown in bitcoin prices this year has given investors a unique opportunity to enter the market at prices many thought weâd never see again.
He added that, while âan ETF [exchange-traded-fund] has not yet been approved, investors and advisors like the fund format because itâs professionally managed and simplifies access to best-in-class custody, trading, reporting, and tax preparation, and allows for the safe capture of events like hard forks and airdrops.â
The companyâs global head of research elaborated:
Our clients have been adding to their positions throughout the downturn, and many whoâve been following the space for a while are using this opportunity to finally come in.
What do you think of Bitwiseâs various crypto funds? Let us know in the comments section below.
Images courtesy of Shutterstock, Morgan Creek Capital Management, and Bitwise Asset Management.
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