Bitwise launches Bitcoin, Ethereum based crypto funds
Creator of the first crypto index fund, Bitwise has introduced two new crypto funds in the market owing to an increased client demand. The two new funds, Bitwise Bitcoin Fund and Bitwise Ethereum Fund are being added to the Bitwise 10 Private index fund, according to a press release. The company said that the launch of two new products was on the back of increased client demand for a crypto specific fund and also investor dissatisfaction with existing options.
Despite a severe bear market that drowned the prices of many cryptocurrencies, crypto enthusiasts seem to be interested in crypto-based funds. “The 68% drawdown in bitcoin prices this year has given investors a unique opportunity to enter the market at prices much thought we’d never see again,” said Hunter Horsley, Bitwise CEO. All crypto-based ETPs announced in the past was followed by a price rise for the respective cryptocurrencies, especially Bitcoin.
“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.
Bitwise Bitcoin fund and Bitwise Ethereum Fund aims to obtain all possible returns even from hard forks and air drops. The coins will be kept in cold storage with a third party custodian who will also prepare tax documents for investors every year.
The funds are open to US accredited investors. Funds are available for trading in two share classes; institutional shares and investor shares. The expense ratio for institutional shares is 1% and the minimum investment required is $1 million. Investor shares require a minimum investment of $25000 and the expense ratio is 1.5%.
The crypto fund manager seems to be in competition with the institutional investors to bring out their own crypto products in the market. They are targeting both individual investors as well as institutional investors. With an increased demand for crypto specific products in the crypto space, ETFs might just get approved.
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