Bitwise Asset Management
What is Bitwise Asset Management
Bitwise Asset Management is a cryptocurrency investment company that offers a range of cryptocurrency investment funds to institutional and individual investors. Bitwise was founded in 2017 and has quickly become one of the leading cryptocurrency asset management firms in the industry.
Bitwise’s flagship product is the Bitwise 10 Crypto Index Fund, which is designed to track the performance of the top 10 cryptocurrencies by market capitalization. The company also offers a range of other cryptocurrency investment products, including funds that track specific sectors of the cryptocurrency market, such as decentralized finance (DeFi) or blockchain infrastructure.
In addition to its investment products, Bitwise is known for its thought leadership in the cryptocurrency industry. The company has published several research reports on various aspects of the cryptocurrency market, including market structure, trading volume, and the potential role of cryptocurrencies in traditional investment portfolios.
The history of Bitwise Asset Management
Bitwise Asset Management was founded in 2017 by Hunter Horsley and Hong Kim, both of whom had prior experience in the finance industry. Horsley had worked at Facebook and was the CEO of a fintech startup, while Kim had worked at Goldman Sachs and was a partner at a hedge fund.
The company launched its flagship product, the Bitwise 10 Crypto Index Fund, in November 2017. The fund was designed to track the performance of the top 10 cryptocurrencies by market capitalization, and was initially only available to accredited investors.
In early 2018, Bitwise launched a private index fund that tracked the performance of the top 20 cryptocurrencies by market capitalization. Later that year, the company launched a fund that focused on cryptocurrency infrastructure companies, such as those involved in mining, exchanges, and custody.
In 2019, Bitwise made headlines when it filed with the US Securities and Exchange Commission (SEC) to launch a bitcoin exchange-traded fund (ETF). The filing was seen as a significant step towards bringing cryptocurrency investment products to mainstream investors. However, the SEC ultimately rejected Bitwise’s ETF proposal, citing concerns over market manipulation and investor protection.
Despite the setback, Bitwise continued to expand its offerings. In 2020, the company launched a DeFi (decentralized finance) index fund that tracked the performance of decentralized finance protocols and applications. Bitwise also launched a fund that focused on Ethereum, the second-largest cryptocurrency by market capitalization.
As of 2021, Bitwise manages over $1 billion in assets under management and continues to be a prominent player in the cryptocurrency investment industry.
How Bitwise Asset Management works
Bitwise Asset Management is a cryptocurrency investment company that offers a range of investment products to institutional and individual investors. The company’s investment products are designed to provide exposure to various aspects of the cryptocurrency market, such as the top cryptocurrencies by market capitalization, decentralized finance (DeFi), and cryptocurrency infrastructure companies.
Bitwise’s investment products work by pooling together investors’ money and using it to buy a diversified portfolio of cryptocurrencies or cryptocurrency-related assets. For example, the Bitwise 10 Crypto Index Fund holds a diversified portfolio of the top 10 cryptocurrencies by market capitalization, weighted by market cap and other factors. Similarly, the Bitwise DeFi Crypto Index Fund holds a diversified portfolio of decentralized finance protocols and applications.
Investors in Bitwise’s funds do not directly hold cryptocurrencies themselves, but rather hold shares in the fund, which represent a pro rata interest in the fund’s portfolio of assets. Bitwise’s funds are structured as private placement securities, which means that they are only available to accredited investors.
Bitwise’s investment strategy is based on a data-driven approach that takes into account factors such as liquidity, security, and regulatory compliance. The company employs a team of cryptocurrency experts and quantitative analysts who use advanced algorithms and machine learning techniques to identify opportunities in the cryptocurrency market.
Bitwise’s investment products are designed to provide investors with a convenient and transparent way to invest in the cryptocurrency market. The company handles all of the technical aspects of investing in cryptocurrencies, such as security and storage, which can be a daunting task for individual investors. Additionally, Bitwise provides regular updates and reporting on the performance of its funds, so investors can track their investments and make informed decisions.
Can Bitwise Asset Management be trusted
Bitwise Asset Management is a registered investment advisor with the US Securities and Exchange Commission (SEC). This means that the company is subject to regulatory oversight and must adhere to certain standards of transparency and disclosure.
Bitwise has also received backing from well-respected investors and venture capital firms, including Khosla Ventures and General Catalyst. The company has also partnered with leading financial institutions, such as Fidelity Digital Assets, to provide custody and other services.
Bitwise is known for its thought leadership in the cryptocurrency industry, and has published several research reports on various aspects of the cryptocurrency market. The company’s investment products are designed to provide exposure to different aspects of the cryptocurrency market, and the company’s investment strategy is based on a data-driven approach that takes into account factors such as liquidity, security, and regulatory compliance.
However, as with any investment, there are always risks involved. Cryptocurrencies are a relatively new and volatile asset class, and investing in them carries significant risks. Additionally, while Bitwise is a registered investment advisor, there is always a risk of regulatory or legal issues arising in the future.
Ultimately, whether or not Bitwise Asset Management can be trusted is a subjective question that depends on a variety of factors, including an individual’s risk tolerance, investment goals, and personal beliefs about the cryptocurrency market. Investors should carefully research any investment opportunity and consult with a financial advisor before making any investment decisions.
Does Bitwise Asset Management charge a fee
Yes, Bitwise Asset Management charges a fee for its investment products. The fee structure varies depending on the specific product and the size of the investment.
For example, the Bitwise 10 Crypto Index Fund charges an annual management fee of 0.50% for investments up to $10 million, and a lower fee for larger investments. The company’s other investment products have similar fee structures.
In addition to the management fee, investors may also be subject to other fees and expenses, such as trading fees and custodial fees.
It’s important for investors to carefully review the fee structure and associated costs before investing in any investment product, including those offered by Bitwise Asset Management. Fees can have a significant impact on investment returns over time, and investors should make sure that any fees charged by an investment manager are reasonable and in line with industry standards.