Bitwise Launches a New Crypto Fund to Provide More Investment Options for Users

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Bitcoin
Bitwise Launches a New Crypto Fund to Provide More Investment Options for Users

Bitwise has released yet another investment product on September 9, 2021.

According to a release, the investment fund goes by Bitwise 10 ex Bitcoin Crypto Index Fund. The product focuses on introducing investors to digital assets other than Bitcoin

Raising Altcoin Awareness

The Bitwise 10 ex Bitcoin Crypto Index Fund eyes to support nine more digital assets. All the altcoins in the fund have a market cap starting from $7 billion to $397 billion. As such, investors can access cryptocurrencies such as Ethereum, Cardano, and Solana

Moreover, the fund is under the management of the Bitwise Crypto Index Committee. Further support of the investment product comes from the Bitwise Crypto Index Advisory Board. By February 2021, Bitwise had over $1 billion assets under management. Introducing the Bitwise 10 ex Bitcoin fund could push its asset management values even further. 

The chief investment officer at Bitwise also admits that there is a growing demand for alternative coins. Bitcoin may be the leading asset, but users have shown interest in other large-cap coins.

More Details on the Product 

Another factor leading to the rising interest in altcoins is their usability applications. Bitcoin has minimal utility since it works as a payment medium or a reserve asset. Other digital assets such as Ethereum offer multiple use cases, which make them more flexible.

The new crypto fund is also going to evaluate the assets based on different sections. Some of the topics include the coin’s regulatory measures, custody, and liquidity. All asset funds remain in the hands of the Coinbase Custody Trust Company. 

Furthermore, investment shares have two categories which comprise institutional and investor shares. Institutional shares have an expense ratio of 2.0% for a minimum placement of $1 million. Investor shares contain an expense ratio of 2.5% for an amount starting from $25,000.

Other Investment Products from Bitwise

Bitwise continues to make digital currency investments easier for everyone. In 2017, the firm launched the Bitwise 10 Crypto Index Fund under the BITW ticker. The fund tracks the indexes of digital currencies ranking in the top ten category. In four years, BITW generated returns worth 400% for its investors. 

The DeFi Crypto Index is another investment fund from Bitwise. The DeFi fund began operating in February 2021, with Ethereum-based tokens topping its list. Some of the DeFi tokens available for investments include Uniswap, Aave, Maker, and Compound.

What’s more, the DeFi investment funds are under the custody of Anchorage Digital Bank. In the end, Bitwise’s suite of products might encourage the global adoption of digital currencies.

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Wayne Jones

Wayne is an all-rounded cryptocurrency writer who has written for several publications in the fintech industry. Having graduated from the University of Essex Colchester, he developed a passion for blockchain technology and has been curious about how the blockchain can modify the traditional financial industry.