World’s first crypto industry ETF met with sharp demand from investors seeking new exposure to the fast-growing space.
Bitwise Asset Management, the world’s leading crypto asset index fund manager, announced today that the Bitwise Crypto Industry Innovators ETF (NYSE: BITQ) has surpassed $100 million in assets under management less than six months after the fund’s May 11th inception. The milestone marks a significant step in the growth of the BITQ fund, the first crypto equities ETF with “pure play” exposure to the companies driving the fast-growing crypto economy.
Designed to offer investors a way to participate in the rise of crypto markets without the challenges of directly holding and having to choose cryptocurrencies, BITQ invests in companies that provide the core infrastructure and services necessary to trade, secure, or maintain crypto assets and their underlying platforms. At each rebalancing, at least 85% of BITQ’s holdings are firms that derive more than three-quarters of their revenue from crypto-related businesses (Tier 1 companies), with up to 15% of holdings reserved for more diversified companies making meaningful investments in the space (Tier 2). The fund’s performance has shown meaningful correlations to crypto asset prices but with less volatility than crypto assets themselves.1
“Many investors are turning to BITQ as the most direct way to gain ‘picks and shovels’ exposure to the booming crypto market,” said Matt Hougan, Chief Investment Officer of Bitwise Asset Management. “But these companies are also interesting investments in their own right: They’re pioneers in disruptive technology that are among the fastest-growing and most profitable companies in the world today.” According to a recent research paper, median annual revenue growth for Tier 1 constituents of the Bitwise Crypto Innovators 30 Index — the index on which BITQ is based — is 37 times that of the S&P 500 as a whole, with higher net margins.2
“Investors and advisors today see extraordinary opportunities in the crypto sector,” said Hunter Horsley, Chief Executive Officer of Bitwise Asset Management. “Our singular focus at Bitwise is helping them access the full range of opportunities emerging in the fast-growing space. We’re excited to see BITQ hit this important milestone so quickly. As the first crypto industry equity ETF to scale the $100 million asset mark, it is proving another valuable tool for crypto investors.”
Bitwise manages a growing suite of investment funds, including one of the largest crypto index funds. The firm focuses on partnering with investment professionals to help them and their clients understand and access crypto markets strategically. Today, Bitwise serves RIAs, multifamily offices, financial advisors, and other institutional managers.
Bitwise developed the Bitwise Crypto Innovators 30 Index on which BITQ is based with input from Moorgate Benchmarks, a London-based index calculation and benchmark administration company recently acquired by Morningstar, known for its deep expertise in the index space. Exchange Traded Concepts, an ETF platform provider, serves as the investment adviser to the BITQ fund, and SEI Investments Distribution Co., a provider of investment management services, is the fund’s distributor.
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