Bitwise Reaches $500 Million in Assets Under Management
- The Bitwise 10 Crypto Index Fund saw an increase in demand, passing $400 million in AUM.
- The Bitwise Bitcoin Fund and Bitwise Ethereum Fund also experienced big inflows.
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Cryptocurrency index and beta fund provider, Bitwise, announced it has exceeded $500 million in assets under management (AUM) after a surge among professional investors. The January 4 press release shows the great results of Bitwise, which reported $100 million in AUM just two months ago.
The San Francisco-based company revealed the biggest demand was generated for its Bitwise 10 Crypto Index Fund, with more than $400M in AUM. Bitwise 10, as The Chain Bulletin reported previously, tracks an index of the 10 most highly valued crypto assets, such as Bitcoin, Ethereum, and Litecoin.
Other Bitwise funds that experienced increased demand during these two months were the Bitwise Ethereum Fund and Bitwise Bitcoin Fund, which manage exposure to the two cryptocurrencies, respectively.
Bitwise reported its Q4 2020 inflows exceeded the total cumulative inflows of 2018 and 2019 altogether. The recent inflows mainly came from investment professionals, such as financial advisors, hedge funds, corporate balance sheets, and other institutional investors.
Co-founder and Chief Executive Officer of Bitwise, Hunter Horsley, described the speed at which professional investors are moving into crypto as remarkable. Still, Horsley shared that Bitwise is instructing all investors to get acquainted with the risks linked with investing in cryptocurrencies, despite the expanding adoption of crypto as an asset class.
- Accredited investors can participate in the Bitwise NFT index fund through a private placement with a minimum investment of $25,000.
- The “Bitwise Blue-Chip NFT Index Fund” will track the top 10 NFT art collections by market capitalization.
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- The ‘Bitwise 10 ex Bitcoin Crypto Index Fun’ will hold 9 out of 10 cryptocurrencies in the company’s flagship fund, excluding Bitcoin.
- The fund was launched to answer increased demand from investors wanting exposure to the broader crypto market.
- The two funds will invest directly in Uniswap’s and Aave’s native tokens.
- Anchorage Digital Bank will serve as the custodian for both funds.