Bitwise launches Crypto Index Fund for retail and accredited US investors

The Crypto Index will track the largest ten crypto by market cap. However, the fund will comprise 75% Bitcoin, 13% Ethereum, and the others in high cap altcoins.

By · Dec 12, 2020 . 5min read

Bitwise launches Crypto Index Fund news

Cryptocurrency asset management firm Bitwise launches its Crypto Index Fund, announcing it as the first crypto fund where both retail and accredited investors can trade.

Hunter Horsely, CEO of Bitwise who made this known on Twitter as Bitwise 10 Crypto Index Fund, BITW. The Crypto Index will track the largest ten cryptocurrencies by market cap. However, the fund will comprise 75% Bitcoin, 13% Ethereum, and the rest in other high cap altcoins.

Perhaps the biggest part of the story is that both retail and accredited investors in the United States can buy the index fund shares. Hence, holders of BITW can sell their shares on the OTC marketplace, OTCQX.

Bitwise to rebalance the Crypto Index Fund – BITW every month based on the activities of the top ten cryptos

BITW gets a rebalance every month based on the activities of the components of the crypto index fund. Bitwise will ensure that it screens index funds with a clear focus on certain risks and weighted market capitalization.

Bitwise CIO, Matt Hougan, while commenting on the index launch, said

The start of public trading for shares of BITW will make it significantly easier for financial advisers, family offices, individuals, and institutional funds to allocate to the space. We believe the Fund offers a robust, one-stop solution.

Meanwhile, the crypto index fund was launched privately in 2017, but as Horsely explained, he faced hurdles that didn’t scale. Issues like only open to accredited investors, PPM, paperwork, signatures, wires, etc., made it difficult to scale. However, with the current crypto index fund available to retail and accredited investors, Bitwise had turned a corner surmounting earlier challenges.

The SEC had earlier turned down Bitwise’s attempt at floating a Bitcoin Exchange Traded Fund (ETF). However, Horsely is not ruling out another try from the crypto asset management firm to get a public Bitcoin ETF.

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