What is Bitwise 10 crypto index fund?

What is Bitwise 10 crypto index fund?

So, what is Bitwise 10 crypto index fund? In a general word for people to understand, Bitwise 10 crypto index fund is like any other investment fund, with the only difference being that this fund invests in cryptocurrencies.

What is Bitwise 10 crypto index fund?
Bitwise 10 Crypto index fund

The Bitwise 10 Crypto Index Fund, which was launched in 2017, uses a research-driven investment technique to provide market-cap-weighted exposure to the top ten cryptoassets, which account for around 80% of the cryptomarket. It is rebalanced on a monthly basis. The assets of the fund are kept in 100% cold storage with a regulated, insured custodian and are audited on a yearly basis.

The Bitwise 10 Large Cap Crypto Index, which underpins the index, has a transparent, formal methodology that includes eligibility restrictions to screen out important risks related to custody, liquidity, regulatory, and other issues.

By typing the ticker symbol BITW into their brokerage window, investors can purchase and sell shares of the Bitwise 10 Crypto Index Fund through standard brokerage accounts. Accredited investors can invest in the fund directly through Bitwise as a private placement.

About Bitwise

Bitwise is a crypto asset manager best known for creating the first and largest cryptoasset index fund, the Bitwise 10 Crypto Index Fund, which is still in operation today (ticker: BITW). The firm, which serves institutions, family offices, financial advisors, and high net worth individuals, managed more than $1 billion in assets across numerous funds as of June 30, 2021.

The firm’s executive team, based in San Francisco, has decades of experience in traditional asset management and indexing, as well as extensive knowledge of software and technology. BlackRock, Goldman Sachs, Deutsche Bank, J.P. Morgan, IndexIQ, ETF.com, Facebook, and Wealthfront are among the companies represented on the team. Highland Capital, Khosla Ventures, General Catalyst, and Blockchain Capital are among the institutional investors and venture capital firms that have funded Bitwise. Institutional Investor, Barron’s, CNBC, Bloomberg, The Wall Street Journal, and The New York Times are among the publications where our leadership team frequently comments on cryptocurrency.

BITWISE 10 INDEX CONSTITUENTS

(As of June 30, 2021)

Bitcoin (BTC)64.3%
Ethereum (ETH)25.8%
Cardano (ADA)4.4%
Bitcoin Cash (BCH)1.0%
Litecoin (LTC)0.9%
Solana (SOL)0.9%
Chainlink (LINK)0.8%
Polygon (MATIC)0.7%
Stellar Lumens (XLM)0.6%
Uniswap (UNI)0.5%
Source : Bitwise, The bitwise 10 crypto index fund constituents

Important aspects of bitwise 10 crypto index fund

Diversification

Unbiased exposure to the cryptoasset markets is provided by a rules-based system. The index is updated on a regular basis to keep up with market movements in this volatile asset class.

Policy

The Bitwise 10 is a one-stop shop for investors looking to obtain exposure to around 80% of the cryptocurrency industry. Different cryptoassets target different markets and have given varying results in the past.

Security

Assets are kept in 100% cold storage with multi-signature protection. Bitwise uses a third-party custodian and assesses security development on a regular basis to stay current with industry best practices.

Performance & Correlation of bitwise 10 crypto index fund

As of June 30, 2021, performance. From June 30, 2020 to June 30, 2021, the following correlations were calculated.

Performance

Particulars  1mo3mo  YTD12moSince Inception 1
Bitwise 10 Crypto Index Fund (NAV)7.2%-31.6%40.5%329.1%246.4%
Bitwise 10 Large Cap Crypto Index7.0% –-31.2%43.4%337.9%284.3%
Bitcoin3.0%-40.7%19.1%280.2%322.6%
Source : Bitwise, The performance of the Bitwise 10 Crypto Index Fund

*** 1. Since Inception: The Bitwise 10 Crypto Index Fund was launched on November 22nd, 2017.

Correlations

ParticularsS&P 500 2US AGG Bonds 3Gold 4
Bitwise 10 Large Cap Crypto Index0.210.020.15
Bitcoin0.200.020.14
Source : Bitwise, The correlation of the Bitwise 10 Crypto Index Fund

*** 2. S&P 500 is denoted by the SPDR S&P 500 Trust ETF (SPY)

*** 3. US AGG BOND is denoted by the iShares Barclays Aggregate Bond Fund (AGG)

*** 4. Whereas Gold is denoted by the SPDR Gold Shares (GLD).

Disclosure by the firm regarding the data mentioned above

The performance of an index is not indicative of the performance of any specific investment. A straight investment in an index is impossible. The performance of the index does not include the Fund’s fees and expenditures.

Actual returns may differ significantly from those predicted by the model. The Bitwise 10 Large Cap Crypto Index was launched on October 1, 2017. The firm also request on reading the footer notes of their publication for more critical disclosures.

The firm also claims that the returns are determined after expenses have been deducted. The management fee, custody charges for storing the fund’s assets charged by the custodian, and usual

Bitw stock and Bitw stock price chart

What is Bitwise 10 crypto index fund?
Bitw stock price chart via Yahoo Finance

In conclusion

The BITW crypto-index statutory trust appears to be well-designed. The high price charged by BITW is at least justified by the difficulty of collecting, holding, and insuring crypto-assets, as well as presenting them in a form that retail brokerage and retirement accounts can hold. In addition, when compared to GDLC, BITW has a lower charge and is more diverse.

Disclosure: This post was written by us and contains our own opinions. This article should not be taken as an evidence by the investors to invest, but for mere knowledge and understanding. We are not being compensated in any way. We are not affiliated with any of the companies whose stock is mentioned in this article.

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