Bitwise surpasses USD100m in AUM due to rising demand for crypto from hedge funds and financial advisers
Bitwise Asset Management, a provider of cryptoasset index funds to professional investors, has surpassed USD100 million in assets under management (AUM).
The majority of demand has been for its Bitwise 10 Crypto Index Fund, which tracks the 10 largest cryptoassets—including bitcoin, ethereum, and litecoin—that historically comprise over 80 per cent of the entire crypto asset class. The fund is currently available as a private placement; shares are expected to start publicly trading later this quarter.
"2020 is the year crypto crossed the chasm for professional investors," says Matt Hougan, Chief Investment Officer for Bitwise. "PayPal's decision to embrace crypto last week was groundbreaking. The challenges that historically kept professional investors on the sidelines—including regulatory concerns, custody, reputation, and understanding—are rapidly being swept aside. Meanwhile, the potential impact crypto can have on portfolios from a risk-adjusted basis, amid the current macro backdrop, is making it hard to ignore."
According to the Bitwise/ETF Trends Release 2020 Benchmark Survey of Financial Advisor Attitudes Toward Cryptoassets, the number of financial advisors who expected to allocate to the space is set to double this year, from 6 per cent to 13 per cent.
"When Bitwise started in 2017, most investors in the space were individuals," says Hunter Horsley, Bitwise's Chief Executive Officer. "Today, we see the greatest demand from RIAs, financial advisors, multifamily offices, and hedge funds. The recent entrance of firms like PayPal, Square, Fidelity, CME, Nomura, Facebook, and others has convinced many who were previously cautious that it's time to reevaluate."
Bitwise specialises in educating and supporting professional investors, with a senior team from firms like BlackRock, Fidelity, Eaton Vance, Wealthfront, Facebook, JP Morgan, and iCapital. In addition to the Bitwise 10 Crypto Index Fund, Bitwise provides funds offering stand-alone exposure to bitcoin and stand-alone exposure to Ethereum. The bitcoin and ethereum funds are today available to accredited investors as private placements.