Bitwise launches world’s first “ex-bitcoin” crypto index fund
Bitwise Asset Management, the world’s largest crypto index fund manager with over USD1.3 billion in AUM, has launched the Bitwise 10 ex Bitcoin Crypto Index Fund.
The new fund is the world’s first large-cap crypto index fund to provide exposure to the exciting developments taking place in the cryptomarket beyond bitcoin.
Bitcoin’s share of the total market capitalisation of the crypto space has fallen from 69 per cent to 42 per cent in the past year, as other assets like Ethereum, Cardano and Solana have grown in size and importance.
The Bitwise 10 ex Bitcoin Crypto Index Fund holds nine of the 10 cryptocurrencies that make up its USD1+ billion flagship Bitwise 10 Crypto Index Fund (OTCQX: BITW), excluding bitcoin. These assets range in market capitalisation from USD8 billion to USD427 billion,4 and include many of the assets that play a foundational role in the rapidly emerging DeFi, smart contract, and NFT ecosystems.
As of August 31, 2021, the new Bitwise 10 ex Bitcoin Large Cap Crypto Index constituents were:
Ethereum (ETH): 68.53 per cent
Cardano (ADA): 15.43 per cent
Solana (SOL): 5.49 per cent
Bitcoin Cash (BCH): 2.09 per cent
Chainlink (LINK): 2.08 per cent
Litecoin (LTC): 1.97 per cent
Uniswap (UNI): 1.50 per cent
Polygon (MATIC): 1.50 per cent
Stellar (XLM): 1.40 per cent
“This launch is being driven by customer demand,” says Matt Hougan, Chief Investment Officer of Bitwise Asset Management. “Many investors today have exposure to bitcoin but are excited by the dynamic developments taking place around other assets. That’s particularly true for professional investors, who value the utility these assets offer. This new fund allows investors to complement their existing bitcoin exposure with a professionally managed solution that captures other large-cap cryptoassets.”
The fund seeks to track the Bitwise 10 ex Bitcoin Large Cap Crypto Index, which is overseen by the Bitwise Crypto Index Committee with support from the Bitwise Crypto Index Advisory Board, and follows a formal methodology. All assets are subject to suitability screening around liquidity, custody, and regulatory risks, among other topics. The fund is weighted by market cap.
The fund’s assets are custodied with Coinbase Custody Trust Company, the world’s largest crypto custodian. The new fund is available to accredited investors as a private placement, and comes in two share classes: Investor Shares, which have a USD25,000 minimum and charge a 2.5 per cent expense ratio, and Institutional Shares, which have a USD1,000,000 minimum and charge a 2.0 per cent expense ratio. Neither share class charges a performance fee.
Bitwise manages a growing suite of investment funds designed to simplify access to the full range of opportunities in the crypto space. These include the Bitwise 10 Crypto Index Fund (OTCQX: BITW), the world’s largest and longest-running crypto index fund; the Bitwise DeFi Crypto Index Fund, the world’s first DeFi index fund; and single-asset crypto funds offering exposure to bitcoin (BTC), Ethereum (ETH), Uniswap (UNI), and Aave (AAVE).
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.