Listed Cryptos – Since its founding in 2017, Bitwise Asset Management has grown into one of the leading crypto-asset fund managers. Today, this company is taking an additional step, announcing that it will launch, on the stock market, a new index that includes several cryptocurrencies.
The BITW crypto fund accessible to all stock exchanges
Via a press release issued December 9 Bitwise Asset Management announces that its funds Bitwise Crypto 10 Index Fund will be listed on the stock market OTCQX .
The latter is the most important (and most demanding) marketplaces for the trading counter stock-counter ( Over The Counter , or OTC ). Bitwise’s fund will be listed there under the symbol “BITW” .
With currently $ 120 million in crypto-assets under management, it will make crypto exposure accessible to all owners of traditional brokerage accounts , such as those of Fidelity , Charles Schwab or Ameritrade .
“The unprecedented events of 2020 have motivated many people to invest in cryptocurrencies for the first time (…) With the BITW Index, investors can now gain exposure to Crypto Investor, Ethereum, and other cryptocurrencies without having to bet on a single winner, or have to constantly monitor the rapid developments in this sector. “
Hunter Horsley, co-founder and CEO at Bitwise Asset Management
To be more precise, the fund is mainly composed of Bitcoin (BTC), at 75% , then 13% for Ethereum (ETH), and the last remaining 12% is divided between Litecoin (LTC), Chainlink (LINK), Tezos (XTZ), Stellar (XLM), XRP , Bitcoin Cash (BCH) and EOS .
A new vector for betting on the performance of crypto-assets
According to Bitwise’s press release, this composite index would have achieved a performance of + 184% between the start of the year and November 30, 2020. The company ensures that the cryptocurrencies serving as underlying to its fund are kept at 100 % (no fractional reserve), by cold storage (offline storage) with a regulated, insured and regularly audited custody service.
“Cryptos are the best performing asset class in the world this year, and the outlook for 2021 is strong (…) The start of public trading in BITW shares will make it much easier for financial advisers, family offices, individuals and institutional funds. We believe the fund offers a solution that is both strong and unique. “
Matt Hougan, Chief Investment Officer of Bitwise
The BITW will thus join, on the OTCQX market, the famous Grayscale Bitcoin Trust (GBTC) from Grayscale Investments, which now weighs more than $ 10 billion in underlying bitcoins.
We want Bitwise’s index fund to meet the same fate as its predecessor. In any case, the public listing on the BITW stock exchange will remain a historic world first, since it is a first for a fund made up of a basket of several cryptos.