SAN FRANCISCO–(BUSINESS WIRE)–Bitwise Asset Management, one of many largest and fastest-growing crypto-specialist asset managers, with AUM over $1.5 billion,1 at this time introduced the launch of the Bitwise Crypto Trade Innovators ETF (NYSE: BITQ). BITQ goals to offer traders with publicity to precious public firms which might be members within the rising bitcoin and cryptocurrency sector.
The brand new ETF gives a means for traders to realize publicity to the crypto market with out the challenges of straight holding crypto property like bitcoin and ethereum.
BITQ seeks to trace the Bitwise Crypto Trade Innovators 30 Index, designed with Bitwise’s business experience to seize “pure-play” firms engaged in precise, materials exercise within the crypto sector. Moreover, the index consists of firms with not less than $100 million of liquid crypto property on their steadiness sheet.
Typically, firms within the new index derive not less than 75% of their income from straight servicing cryptocurrency markets or have not less than 75% of their internet property accounted for by direct holdings of liquid cryptoassets. Such firms might, for instance, supply crypto brokerage companies, monetary and banking companies, mining options, expertise options, or analytics options. The index rebalances quarterly.
“Like e-commerce and cell earlier than it, crypto is a disruptive expertise creating large alternatives for brand spanking new firms to emerge as winners,” stated Matt Hougan, CIO of Bitwise. “Till not too long ago, most nice crypto innovators have been personal firms, however that’s altering quickly. Right this moment, there’s a rising set of public firms capitalizing on crypto, and extra to return. BITQ goals to determine these companies and provides traders entry.”
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 permits new IPOs and direct listings to enter the index someday after their debut, permitting it to rapidly adapt to the quickly altering market. For instance of this rule’s influence, 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.
“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,” stated Hunter Horsley, CEO of Bitwise. “We’ve heard repeatedly from purchasers that the first problem has been discovering a approach to entry the extremely advanced and fast-moving crypto house. With BITQ, our intention is to make crypto funding alternatives obtainable by way of conventional investing platforms and a well-known, 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.”
Bitwise manages a rising suite of funding funds, together with one of many largest crypto index funds, the primary “DeFi” crypto index fund, and various different methods. The agency focuses on partnering with funding professionals, and at this time serves RIAs, multifamily workplaces, 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 primarily based in London, England with deep experience within the index house. Alternate 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 companies, is the distributor of BITQ.
1 As of Might 7, 2021
About Bitwise Asset Administration
Primarily based in San Francisco, Bitwise is likely one of the largest and fastest-growing crypto asset managers. As of Might 7, 2021, Bitwise managed over $1.5 billion throughout an increasing suite of funding options. The agency is understood for managing one of many largest crypto index funds (OTCQX: BITW), and pioneering merchandise spanning Bitcoin, Ethereum, DeFi, and now crypto-focused equities, as examples. Bitwise focuses on partnering with monetary advisors and funding professionals to offer high quality training and analysis. The workforce at Bitwise combines experience in expertise with a long time of expertise in conventional asset administration and indexing—coming from companies together with BlackRock, Blackstone, Fb, and Google, in addition to the U.S. Legal professional’s Workplace. Bitwise is backed by main institutional traders and asset administration executives, and has been profiled in Institutional Investor, CNBC, Barron’s, Bloomberg, and The Wall Road Journal.
RISK DISCLOSURE AND IMPORTANT INFORMATION
Fastidiously take into account the fund’s funding aims, danger elements, expenses, and bills earlier than investing. This and extra data might be discovered within the Fund’s full or abstract prospectus, which can be obtained by visiting (www.BITQETF.com). Traders ought to learn it rigorously earlier than investing.
Investing entails danger, together with the potential lack of principal. There is no such thing as a assure or assurance that the methodology used to create the Index will end result within the Fund reaching constructive funding returns or outperforming different funding merchandise. Indices are unmanaged and don’t embody the impact of charges. One can not make investments straight in an index.
The Fund is non-diversified and won’t spend money on crypto property straight or by way of using derivatives and likewise won’t spend money on preliminary coin choices. The Fund might, nevertheless, have oblique publicity to crypto property by advantage of its investments in Crypto Trade Innovators that use a number of crypto property as a part of their enterprise actions or that maintain crypto property as proprietary investments.
Along with the conventional dangers related to investing, worldwide investments might contain danger of capital loss from unfavorable fluctuation in foreign money values, from variations in typically accepted accounting rules or from social, financial or political instability in different nations. Rising markets contain heightened dangers associated to the identical elements in addition to elevated volatility and decrease buying and selling quantity. Narrowly targeted investments and investments in small firms sometimes exhibit larger volatility.
Traders within the Fund ought to be keen to just accept a excessive diploma of volatility within the worth of the Fund’s shares and the potential of important losses. An funding within the fund entails a considerable diploma of danger.
Sure of the Fund’s investments could also be topic to the dangers related to investing in crypto property, together with cryptocurrencies and crypto tokens. As a result of crypto property are a brand new technological innovation with a restricted historical past, they’re extremely speculative asset. Future regulatory actions or insurance policies might restrict the power to promote, trade or use a crypto asset. The worth of a crypto asset could also be impacted by the transactions of a small variety of holders of such crypto asset. Crypto property might decline in reputation, acceptance or use, thereby impairing its worth.
The expertise referring to crypto property and blockchain is new and growing. At the moment, there are a restricted variety of publicly listed or quoted firms for which crypto asset and blockchain expertise represents an attributable and important income stream.
Shares of ETFs are purchased and offered at market worth (not NAV) and are usually not individually redeemed from the Fund. Brokerage commissions will scale back returns.
Alternate Traded Ideas, LLC serves because the funding advisor of the fund. The Fund is distributed by SEI Investments Distribution Co. (SIDCO), which isn’t affiliated with Alternate Traded Ideas, LLC or any of its associates.