Crypto asset management firm Bitwise today announced its Crypto Index Fund is live, making it the first publicly traded crypto fund open to US investors.
Known as Bitwise 10 Crypto Index Fund (BITW), the crypto index tracks the 10 largest cryptocurrencies and is made up up of around 75% Bitcoin, 13% Ethereum, and the rest in other high cap altcoins.
The crypto index fund allows both retail and accredited investors to buy shares of the the fund that represent the index. BITW will be sold on OTC marketplace OTCQX.
The Bitwise 10 Crypto Index Fund
The Bitwise 10 Crypto Index Fund will be rebalanced every month with what the company calls ‘the 10 most highly valued cryptocurrencies’.
Each cryptocurrency in the index fund is ‘screened and monitored for certain risks, weighted by market capitalization, and rebalanced monthly. The fund provides the security and simplicity of a traditional investment vehicle, with shares tradable in brokerage accounts using ticker “BITW”.’
Speaking of the launch, Bitwise CIO, Matt Hougan, said that cryptocurrency has been the ‘best-performing asset class in the world this year.’
And the CIO laid out the ease of which the crypto index fund will now offer US investors easy exposure to Bitcoin and other leading crypto assets, without having to learn how to buy and store them.
‘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.’
Bitwise CEO, Hunter Horsley took to Twitter to announce the launch, and laid out the company’s three-year journey to make this possible.
The crypto index fund launched privately in 2017, but Horsely explained how the hurdles made scaling difficult, and so they undertook the decision to launch publicly, earlier this year.
Horsely explained how the regulatory hurdles had taken 10 months to get over, but with the public launch earlier today, it was all systems go as the crypto index fund is now tradable on the likes of Schwab, TD, Fidelity, eTrade among many other brokerage platforms.
When Bitcoin ETF?
Bitwise CEO, Hunter Horsley also mentioned the problems Bitwise ran into while attempting to launch a Bitcoin ETF. The company has been rejected by the SEC several times, but the CEO says they ‘are still on it’ but it’s not possible yet.
A Bitcoin ETF will arguably explode the value of the Bitcoin market. Whenever an ETF for a traditional asset has been introduced the value of said asset has exploded, and nobody doubts it will be any different for Bitcoin.
An ETF is an exchange-traded fund. They’re common for things like stocks, commodities and fiat currencies. As an example, someone who invests in a tech ETF would be able to take advantage of appreciating share prices without physically owning the tech stock.
A Bitcoin ETF will track the price of Bitcoin (BTC) so people who want to speculate on the price of BTC can do so without actually having to own the asset.
ETFs are different from index funds as they can be traded constantly throughout the day, while index funds can only be bought and sold for a price set daily.
Why would anyone prefer to buy a Bitcoin ETF when they can buy Bitcoin? Beats me, but the fact is most people prefer not to buy the physical asset, and an alternative like an ETF is always hugely popular.
Also, the regulatory hurdles that are in the way for institutions to buy Bitcoin are removed with a Bitcoin ETF. Any US investor will simply be able to buy exposure through the ETF and trade in and out as freely as they wish.
Bitwise Crypto Index Fund a Great Leap Forward
The Bitwise 10 Crypto Index Fund (BITW) is another giant leap for the Bitcoin and crypto space at large.
Grayscale already runs a public Bitcoin fund and other altcoin funds, but despite the success of GBTC most institutions can’t get access to it.
Bitwise (BITW) offers easy access to Bitcoin to anyone in the US market, and as it grows the fund will have to grow its Bitcoin allocation.
Added with Grayscale’s rampant buying spree, and not forgetting PayPal and MicroStrategy’s quest for more bitcoins, there is real “fear” that the Bitcoin supply could quickly dry up.
Author: Tommy Limpitlaw
Bitcoin FAQs
There are several reputable Bitcoin exchanges operating in The Netherlands. However, the most recommended exchanges are Kraken or BlockFi. Or you can buy Bitcoin from Bitcoin marketplaces, such as LocalBitcoins or Paxful. All of these exchanges and marketplaces are global with high liquidity and excellent customer service. Check out our reviews on each platform.
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis. There are many companies that have a system for dollar cost averaging (DCA). This is a great way to buy Bitcoin, and is known in the space as ‘Stacking Sats’. Basically, what you do is set up small automatic, recurring payments to buy Bitcoin (or sats), and you DCA over time.
Bitcoin is a decentralized money. A money that nobody can control or manipulate, and a money that nobody can print and devalue. It’s also not necessary for any third party to verify transactions, so it makes it much faster and cheaper to send value. It’s also money built on the Internet: a society of almost 5 billion people.
Bitcoin is a peer-to-peer money that nobody can manipulate. It’s all set in the Bitcoin codebase which is secured by hundreds of thousands of computers all around the world. Bitcoins can be sent by anybody and no third party is need to verify the transactions, and nobody can stop Bitcoins being sent
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.
