On Wednesday, Bitwise Asset Administration, one of many largest and fastest-growing crypto-specialist asset managers, with AUM over $1.5 billion, introduced the launch of the Bitwise Crypto Trade Innovators ETF (NYSE: BITQ). BITQ goals to supply traders with publicity to beneficial public corporations within the rising Bitcoin and cryptocurrency sectors.
The brand new ETF provides a method for traders to achieve publicity to the crypto market with out the challenges of immediately holding crypto belongings like Bitcoin and Ethereum.
BITQ seeks to trace the Bitwise Crypto Trade Innovators 30 Index, designed with Bitwise’s trade experience to seize “pure-play” corporations engaged in precise, materials exercise within the crypto sector. Moreover, the index consists of corporations with at the least $100 million of liquid crypto belongings on their stability sheet.
Most often, corporations within the new index should derive at the least 75% of their income from immediately servicing cryptocurrency markets or have at the least 75% of their internet belongings accounted for by direct holdings of liquid crypto belongings. Such corporations might, for instance, provide crypto brokerage providers, monetary and banking providers, mining options, expertise options, or analytics options. The index rebalances quarterly.
“Like e-commerce and cellular earlier than it, crypto is a disruptive expertise creating large alternatives for brand new corporations to emerge as winners,” mentioned Matt Hougan, CIO of Bitwise. “Till just lately, most nice crypto innovators have been personal corporations, however that’s altering quickly. At the moment, there’s a rising set of public corporations capitalizing on crypto and extra to return. BITQ goals to determine these companies and provides traders entry.”
Distinctive Crypto Traits
The index is designed particularly to seize the distinctive traits of the crypto fairness market. For instance, the index has a “fast-entry” rule that enables new IPOs and direct listings to enter the index someday after their debuts, permitting the index to adapt to the quickly altering market. For instance of this rule’s affect, on April 14, 2021, one of many largest names in cryptocurrency, Coinbase, went public. On April 15, 2021, Coinbase certified for inclusion within the index that BITQ tracks at a ten% weight.
See additionally: With Coinbase Going Public, Here’s What ETF Investors Need to Know
“Over the previous few years, many traders have needed to watch from the sidelines as a choose few have reaped the rewards of stellar cryptocurrency returns,” mentioned Hunter Horsley, CEO of Bitwise. “We’ve heard repeatedly from purchasers that the first problem has been discovering a solution to entry the extremely complicated and fast-moving crypto house. With BITQ, we goal to make crypto funding alternatives accessible by means of conventional investing platforms and a well-recognized, liquid, and cost-effective ETF. We’re thrilled to see this house proceed to develop as traders more and more gravitate towards this transformative asset class.”
ETF Developments CIO and Director of Analysis Dave Nadig additionally chimed in, stating, “With the SEC nonetheless firmly on the fence about direct cryptocurrency ETFs, the house for “near-miss” ETFs is getting extra aggressive. Whether or not you’re a crypto believer or not, there is an ecosystem creating, and BITQ provides a novel, pure play solution to entry the house — with the related dangers and prices of any slim, excessive profile thematic funding.”
Bitwise manages a rising suite of funding funds, together with one of many largest crypto index funds, the primary “DeFi” crypto index fund, and several other different methods. The agency focuses on partnering with funding professionals and right this moment serves RIAs, multifamily places of work, monetary advisors, and different institutional managers.
The BITQ fund tracks the Bitwise Crypto Trade Innovators 30 Index. Developed by Bitwise with enter from Moorgate Benchmarks’ index analysis workforce, the index is calculated and distributed by Moorgate Benchmarks, a quickly rising index calculation and benchmark administration firm based mostly in London, England, with deep experience within the index house. Trade Traded Ideas, an ETF platform supplier, serves because the funding adviser to the BITQ fund, and SEI Funding Distribution Co., a supplier of funding administration providers, is the distributor of BITQ.
For extra info, go to www.BITQETF.com.
For extra information, info, and technique, go to the Crypto Channel.