Bitwise Launches World's First Decentralized Finance ("DeFi") Crypto Index Fund
SAN FRANCISCO, Feb. 17, 2021 /PRNewswire/ -- Bitwise Asset Management, creator of the world's largest crypto index fund, the $800 million AUM Bitwise 10 Crypto Index Fund (OTCQX: BITW), today announced the launch of the Bitwise DeFi Crypto Index Fund.
Decentralized finance ("DeFi") refers to the emerging category of digital, peer-to-peer financial services technologies that enable trading, loans, interest accounts, and more. Using public blockchains and cryptoassets rather than legacy systems, DeFi services aim to cut out traditional Wall Street intermediaries, allowing for the potential to facilitate faster operation, 24/7 availability, no minimums or paperwork, full transparency, and auditability.
"DeFi is the story of 2021," said Matt Hougan, chief investment officer for Bitwise Asset Management. "The growth and activity in the market is incredible. Today there are decentralized trading venues handling over $30 billion in volume per month; automated lending programs making individual loans as large as $200 million; and the total estimated value of funds currently locked into DeFi-related contracts recently crossed $40 billion."
The new Bitwise fund holds a portfolio of cryptoassets that power these DeFi services, and seeks to track the Bitwise Decentralized Finance Crypto Index. Holdings are screened for important risks, weighted by market capitalization, and rebalanced monthly.
The formal index methodology is public, and is overseen and adjusted on an ongoing basis by the Bitwise Crypto Index Committee.
The Bitwise Crypto Index Committee is supported by the Bitwise Decentralized Finance Advisory Council, a group of industry-leading DeFi experts who provide insights on the emerging sector.
The Advisory Council features:
Initial constituents and weights of the Index as of 4 p.m. ET on Feb. 16, 2021, were:
The Fund's custodian is Anchorage Digital Bank, N.A., which became the first federally chartered digital asset bank in U.S. history in January, and today secures over $5 billion in cryptoassets.
"DeFi is happening now, every day, and the growth is exponential. As the first national digital bank, we're here to enable its broader adoption as a qualified custodian. We're happy to enable more DeFi participation through Bitwise's new fund," said Diogo Mónica, president and co-founder of Anchorage Digital.
The Fund's expense ratio is 2.5%, which includes costs related to custody, tax, accounting, and management fees. In the future, the fund may seek to facilitate public trading of shares in a secondary market.
The fund is now available to accredited investors as a private placement, and is open for subscriptions at www.bitwiseinvestments.com.
About Bitwise Asset Management
Bitwise Asset Management is a leading provider of index and beta crypto funds. Based in San Francisco, Bitwise's team combines expertise in technology with decades of experience in traditional asset management and indexing—coming from firms including Facebook, Google, Wealthfront, BlackRock, Fidelity, Deutsche Bank, and IndexIQ. Bitwise is backed by leading institutional investors and asset management executives, and is a frequent commentator on crypto in the press. It has been profiled in Institutional Investor, CNBC, Barron's, Bloomberg, The Wall Street Journal, The New York Times, and many other leading publications. The firm is a trusted partner to financial advisors, RIAs, multifamily offices, hedge funds, and other professional investors as they navigate the crypto space. For more information, visit: www.bitwiseinvestments.com.
About Anchorage Digital Bank
Anchorage Digital Bank makes it simple and secure for institutions to gain exposure to digital assets as the first federally chartered digital asset bank. With secure custody at its core, Anchorage is the premier partner for institutions and corporations. Anchorage offers financial solutions for today and tomorrow. Learn more at anchorage.com.
Diogo Mónica and Nathan McCauley co-founded Anchorage Digital after working together at the forefront of security engineering at Square and Docker. They created Anchorage to bring the best of modern security engineering to institutional custody and banking.
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