Bitwise’s AUM has surpassed $100 million
The San Francisco-based Bitwise Asset Management has announced today that it recently has surpassed $100 million in assets under management (AUM) following an increased demand for its Crypto Index Fund from institutional investors.
The Bitwise 10 Crypto Index Fund is a tool that tracks the 10 largest cryptocurrencies —including Bitcoin, Ethereum, and Litecoin—that historically comprise over 80% of the entire cryptocurrencies class.
“2020 is the year crypto crossed the chasm for professional investors,” said Matt Hougan , Chief Investment Officer for Bitwise. “PayPal’s decision to embrace crypto last week was groundbreaking. The challenges that historically kept professional investors on the sidelines—including regulatory concerns, custody, reputation, and understanding—are rapidly being swept aside. Meanwhile, the potential impact crypto can have on portfolios from a risk-adjusted basis, amid the current macro backdrop, is making it hard to ignore.”
According to a Bitwise survey published in January, more institutional investors are expected to adopt cryptocurrencies this year. The report saw an increase in institutional investors’ interest in the asset class from 6% to 13%.
“When Bitwise started in 2017, most investors in the space were individuals,” said Hunter Horsley, Bitwise’s Chief Executive Officer. “Today, we see the greatest demand from RIAs, financial advisors, multifamily offices, and hedge funds. The recent entrance of firms like PayPal, Square, Fidelity, CME, Nomura, Facebook, and others has convinced many who were previously cautious that it’s time to reevaluate.”
Grayscale Investments, the world’s largest digital currency asset manager has a record $7.3 billion in total AUM. The funds are mostly held in Grayscale’s trusts for Bitcoin (BTC) and Ether (ETH), along with the firm’s digital large-cap fund. The most recent spike is likely linked to the surge in crypto market prices following the recent news PayPal would offer crypto payments from 2021.
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