Bitwise Launch The First Traded Crypto Index Fund in US: BITW
California based cryptocurrency index and beta fund provider Bitwise announced the inclusion of its 10 crypto index fund in the OTCOX market, which has just become the first publicly traded digital assets index fund in the United States.
According to a press release published by the company, shares of its Bitwise 10 Crypto Index Fund can be traded starting today in public quotation under the symbol "BITW." Investors will be able to buy and sell it in traditional brokerage accounts.
BITW will represent a fund that debuts with approximately 120 million dollars in assets under management.
Hunter Horsley, co-founder and CEO of Bitwise Asset Management said:
The unprecedented events of 2020 have motivated many to invest in crypto for the first time, with BITW, investors can now get exposure to Bitcoin, Ethereum, and other cryptocurrencies without trying to pick winners or having to constantly monitor the rapid changes in the space.
The Bitwise 10 Crypto Index Fund is an investment instrument that tracks the top ten cryptos b market capitalization. It is rebalanced monthly. Currently, "the Fund held approximately 75% Bitcoin and 13% Ethereum, with the remaining 12% allocated across XRP, Litecoin, Chainlink, Tezos, and other cryptocurrencies."
According to the Bitwise website, the fund has performed 24.8 percent in the last month, while 82 percent in the previous three months, and it is 166 percent in 2020.
Expert Investor Takeaway
It is another step in the crypto normalization as investment instruments. It is a matter of time that more indexes and other financial instruments would be added to traditional markets.
The ecosystem of crypto resources is becoming more significant with new investment assets, traditional banking, and payment implementation becoming real.
As Hunter Horsley, co-founder and chief executive of Bitwise, said to Coindesk, the fund's addition in the OTC market provides investors with exposure to cryptocurrencies quickly.
Matt Hougan, Bitwise's chief investment officer, also said to CoinDesk:
BITW is designed for financial advisors, financial advisors are eager for a safe and easy way to allocate to crypto for clients.
In other words, they expect comprehensive implementation and new clients. It would only lead the crypto market cap up and, for instance, the price of the most popular crypto currencies in the market.
BITW Performance Analysis
The Bitwise 10 Crypto Index Fund is moving down on Wednesday as investors are trying to close the gap between OTC price and NAV valuation.
On Wednesday, BITW is trading 5.77 percent down at 24.50 dollars per unit, extending its decline from the 50.00 dollars per share level reached on December 4. Despite the drop, the gap in prices is still huge, as the NAV price is currently around the 17.00 dollars per unit.
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