Bitwise Launches World's First Decentralized Finance ("DeFi") Crypto Index Fund
PR Newswire | Feb 17, 2021 08:01AM EST
02/17 07:00 CST
Bitwise Launches World's First Decentralized Finance ("DeFi") Crypto Index FundThe new fund is open today (Feb. 17), enabling accredited investors and financial advisors to gain diversified exposure to the fast-growing sector of the crypto market. SAN FRANCISCO, Feb. 17, 2021
SAN FRANCISCO, Feb. 17, 2021 /PRNewswire/ -- Bitwise Asset Management, creator of the world's largest crypto index fund, the $800 million AUM Bitwise 10 Crypto Index Fund (OTCQX: BITW), today announced the launch of the Bitwise DeFi Crypto Index Fund.
Decentralized finance ("DeFi") refers to the emerging category of digital, peer-to-peer financial services technologies that enable trading, loans, interest accounts, and more. Using public blockchains and cryptoassets rather than legacy systems, DeFi services aim to cut out traditional Wall Street intermediaries, allowing for the potential to facilitate faster operation, 24/7 availability, no minimums or paperwork, full transparency, and auditability.
"DeFi is the story of 2021," said Matt Hougan, chief investment officer for Bitwise Asset Management. "The growth and activity in the market is incredible. Today there are decentralized trading venues handling over $30 billion in volume per month; automated lending programs making individual loans as large as $200 million; and the total estimated value of funds currently locked into DeFi-related contracts recently crossed $40 billion."
The new Bitwise fund holds a portfolio of cryptoassets that power these DeFi services, and seeks to track the Bitwise Decentralized Finance Crypto Index. Holdings are screened for important risks, weighted by market capitalization, and rebalanced monthly.
The formal index methodology is public, and is overseen and adjusted on an ongoing basis by the Bitwise Crypto Index Committee.
The Bitwise Crypto Index Committee is supported by the Bitwise Decentralized Finance Advisory Council, a group of industry-leading DeFi experts who provide insights on the emerging sector.
The Advisory Council features:
* Michael Anderson, Managing Partner, Framework Ventures * Ben Forman, Managing Partner, ParaFi Capital * Avichal Garg, Managing Partner, Electric Capital * Aleks Larsen, Venture Investor, Blockchain Capital * Scott Lewis, Founder, DeFi Pulse
Initial constituents and weights of the Index as of 4 p.m. ET on Feb. 16, 2021, were:
Asset TickerCategory Weight
Uniswap UNI Exchange 25.14%
Aave AAVE Lending 23.37%
Synthetix SNX Derivatives 11.80%
Maker MKR Lending 10.67%
Compound COMP Lending 8.73%
UMA UMA Derivatives 6.16%
Yearn.FinanceYFI Asset Management5.47%
0x ZRX Exchange 5.07%
Loopring LRC Exchange 3.60%
The Fund's custodian is Anchorage Digital Bank, N.A., which became the first federally chartered digital asset bank in U.S. history in January, and today secures over $5 billion in cryptoassets.
"DeFi is happening now, every day, and the growth is exponential. As the first national digital bank, we're here to enable its broader adoption as a qualified custodian. We're happy to enable more DeFi participation through Bitwise's new fund," said Diogo Mnica, president and co-founder of Anchorage Digital.
The Fund's expense ratio is 2.5%, which includes costs related to custody, tax, accounting, and management fees. In the future, the fund may seek to facilitate public trading of shares in a secondary market.
The fund is now available to accredited investors as a private placement, and is open for subscriptions at www.bitwiseinvestments.com.
About Bitwise Asset Management
Bitwise Asset Management is a leading provider of index and beta crypto funds. Based in San Francisco, Bitwise's team combines expertise in technology with decades of experience in traditional asset management and indexing-coming from firms including Facebook, Google, Wealthfront, BlackRock, Fidelity, Deutsche Bank, and IndexIQ. Bitwise is backed by leading institutional investors and asset management executives, and is a frequent commentator on crypto in the press. It has been profiled in Institutional Investor, CNBC, Barron's, Bloomberg, The Wall Street Journal, The New York Times, and many other leading publications. The firm is a trusted partner to financial advisors, RIAs, multifamily offices, hedge funds, and other professional investors as they navigate the crypto space. For more information, visit: www.bitwiseinvestments.com.
About Anchorage Digital Bank
Anchorage Digital Bank makes it simple and secure for institutions to gain exposure to digital assets as the first federally chartered digital asset bank. With secure custody at its core, Anchorage is the premier partner for institutions and corporations. Anchorage offers financial solutions for today and tomorrow. Learn more atanchorage.com.
Diogo Mnica and Nathan McCauley co-founded Anchorage Digital after working together at the forefront of security engineering at Square and Docker. They created Anchorage to bring the best of modern security engineering to institutional custody and banking.
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This press release is neither an offer to sell nor a solicitation for an offer to buy Interests in any Fund. Any such offer or solicitation will be made solely through definitive offering documents, identified as such, which will contain information about each fund's investment objectives, terms and conditions of an investment, and may also describe risks and tax information related to an investment therein, and which qualifies in its entirety the information set forth in this press release. Prospective investors must not construe the contents of this document as legal, tax, investment, or other advice. Each prospective investor is urged to consult with its own advisers with respect to legal, tax, regulatory, financial, accounting, and similar consequences of investing in any Fund. The Units and the Shares (the "Interests") of the Funds have not been registered under the Securities Act of 1933 ("the Securities Act"), the securities laws of any state, or the securities laws of any other jurisdiction, nor is such registration contemplated. The Interests will be and have been offered and sold under the exemption provided by Section 4(a)(2) of the Securities Act of 1933 and Rule 506 of Regulation D promulgated thereunder and other exemptions of similar import in the laws of the states and jurisdictions where the offering will be made. The offer and sale of the Interests have not been registered with or approved or disapproved by the Securities and Exchange Commission (the "SEC") or the securities commission or regulatory authority of any state or foreign jurisdiction. The Funds mentioned herein are not registered as investment companies under the Investment Company Act of 1940, as amended, and Bitwise believes that such registration is not required. Bitwise is not registered as an Investment Adviser under the Investment Advisers Act of 1940 (the "Advisers Act"), and is not registered as a Commodity Pool Operator or Commodity Trading Adviser under the Commodity Exchange Act (the "Commodity Exchange Act").
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