Bitwise Launches New Institutional DeFi Index Fund

Bitwise Asset Management has announced the launch of the Bitwise DeFi Crypto Fund. This will allow institutional investors to participate and gain exposure to many bluechip DeFi tokens. This fund will include nine DeFi tokens including the likes of Aave, Synthetix, Compound, Maker, and Uniswap.

Bitwise had previously launched a crypto fund focused on the top-10 cryptocurrencies. But this new fund is more focused on allowing institutional investors to access the wider, and more experimental, DeFi market.

“The DeFi space is looking to disrupt the traditional finance market, replacing overpaid bankers with automated software”. Bitwise CIO Matthew Hougan said in a recent interview with Decrypt. “That is a huge addressable market, measured in trillions of dollars.” 

Hougan added, “DeFi is enormously risky, of course. We expect there to be blow-ups and hacks in the space over time. But there is also significant potential and very real growth that deserve people’s attention.” 

Bitwise DeFi Crypto Fund

The Bitwise DeFi Crypto Fund holds a portfolio of cryptocurrencies that power DeFi services and a committee. Known as the Bitwise Crypto Index Committee, oversees and adjusts the fund’s Index. 

Additionally, the fund is supported by the Bitwise Decentralized Finance Advisory Council. Which is composed of a group of DeFi experts, including Aleks Larsen, venture investor at Blockchain Capital, and Avichal Garg, managing partner at Electric Capital. 

A minimum investment of $25,000 is required from accredited investors and the expense ratio is 2.5%. Which includes costs related to custody, tax, accounting, and management fees. The custodian of the fund is Anchorage, which became the first federally chartered digital asset bank in U.S. history earlier this year. 

Many factors will be considered for adding new assets or rebalancing the fund and that will all be overseen by the Committee. Also, the fund is rebalanced each month with subscriptions and redemptions allowed on Tuesday and Thursday every week.

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