Bitwise Asset Management has announced its plans to convert its $1.3 billion Bitwise 10 Crypto Index Fund (BITW) into an exchange-traded fund (ETF). This move comes as the company aims to capitalize on market momentum and offer a more diversified and simplified crypto ETF option to investors.
The fund, which was launched in 2017, currently holds a diversified portfolio of 10 major cryptocurrencies, with Bitcoin accounting for 75% of the holdings, followed by Ethereum at 16.2% and Solana at 4.4%. Despite the strong lineup of assets, the fund is trading at a 25% discount to its net asset value (NAV), indicating that shares are priced below the actual value of the underlying cryptocurrencies.
Bitwise CEO Hunter Horsley emphasized the importance of evolving the fund into an ETF to better serve investors. The ETF structure offers several advantages, including more efficient operations and enhanced regulatory protections. Additionally, ETFs allow for subscriptions and redemptions at NAV, ensuring that trading prices closely align with the value of the underlying assets.
The decision to convert the Bitwise 10 Crypto Index Fund into an ETF reflects Bitwise’s commitment to innovation and meeting the changing needs of the crypto market. By offering a diversified portfolio that automatically adjusts to include top-performing assets, Bitwise aims to provide investors with a convenient and effective way to participate in the growing crypto market.
The move also comes at a time of bullish momentum in the crypto market, with Bitcoin and other assets reaching record highs. This surge highlights the appeal of diversified index funds, especially during periods of market growth. By converting the Bitwise 10 Crypto Index Fund into an ETF, Bitwise is positioning itself to better capitalize on this momentum and provide investors with a more efficient and investor-friendly investment option.
Overall, the conversion of the Bitwise 10 Crypto Index Fund into an ETF represents a significant step in enhancing Bitwise’s product lineup and offering investors a more accessible and regulated way to invest in cryptocurrencies. With the ETF structure in place, Bitwise is well-positioned to attract a broader range of investors and navigate the evolving landscape of the crypto market with confidence and innovation.
