Bitwise Asset Management is a cryptocurrency asset manager that develops funds, indexes, insight, and other services. The firm is a partner to individuals, financial advisors, family offices, investment managers, and institutions in navigating cryptocurrency.
The company recently launched the Bitwise Bitcoin Fund and the Bitwise Ethereum Fund, which are the second and third strategies in the Bitwise fund family, joining the broad-market Bitwise 10 Private Index Fund. The funds, which are open to US-accredited investors, aims to capture the total returns available to investors in bitcoin and ethereum.
The funds are currently available in two share classes: Institutional Shares and Investor Shares. Institutional Shares have an all-in expense ratio of 1.0% and a minimum investment of $1 million, while Investor Shares have an all-in expense ratio of 1.5% and a minimum investment of $25,000. Bitwise said that the new funds safeguard holdings in 100% cold storage with an institutional third-party custodian, and prepare simple K-1 tax documents for investors each year.
According to the company, the launch of the funds is driven by inbound client interest and investor dissatisfaction with existing options.
“With significant positive developments on the horizon, including the launch of the Bakkt bitcoin futures exchange from ICE, the launch of Fidelity Digital Assets, and the continued movement of institutional investors like Yale University and Stanford University into the crypto space, we have seen significant inbound demand for high-quality bitcoin and ether funds,” said Matt Hougan, global head of research for Bitwise. “Our clients have been adding to their positions throughout the downturn, and many who’ve been following the space for a while are using this opportunity to finally come in.”
“Though an ETF has not yet been approved, investors and advisors like the fund format because it’s professionally managed and simplifies access to best-in-class custody, trading, reporting, and tax preparation, and allows for the safe capture of events like hard forks and airdrops,” Horsley said.