Bitwise Asset Management announced on Wednesday the launch of its two new low-cost, liquid beta funds, holding bitcoin and ether exclusively. According to Bitwise, the Bitwise Bitcoin Fund and the Bitwise Ethereum Fund are the second and third strategies in the Bitwise fund family, joining the broad-market Bitwise 10 Private Index Fund.
Bitwise reported that the Bitwise Bitcoin Fund holds bitcoin and aims to capture the total returns available to investors in the world’s largest cryptoasset, including any meaningful hard forks and air drops. The Bitwise Ethereum Fund does the same for ether. Funds safeguard holdings in 100% cold storage with an institutional third-party custodian and prepare simple K-1 tax documents for investors each year. It was also revealed:
“The funds are available today in two share classes: 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. Investors can come in and out of the fund weekly, with no lockups, withdrawal fees, or performance fees. The funds are open to U.S.-accredited investors.”
While sharing more details about the funds, Hunter Horsley, Bitwise CEO, stated:
“The 68% drawdown in bitcoin prices this year has given investors a unique opportunity to enter the market at prices many thought we’d never see again. 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.”
Matt Hougan, Global Head of Research at Bitwise, went on to add:
“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. 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.”
