Bitwise, one of the leading cryptocurrency fund managers, reported another major milestone on Tuesday, as assets under management for its digital asset funds crossed $ 1 billion for the first time.
The Bitwise 10 Crypto Index Fund, which offers diversified exposure to Bitcoin (BTC) and other major cryptocurrencies, accounts for over 90% of total assets under management.
Hunter Horsely, CEO of Bitwise, said the crypto industry is at a “turning point” when it comes to adoption. He explained:
“We are seeing a growing demand from professional investors and financial advisers for crypto exposure. […] Professional investors appreciate index funds because they provide exposure while providing the peace of mind that the strategy will be managed and rebalanced as the category evolves. “
The asset manager has also reported growth in its family of funds, including its new DeFi Crypto Index Fund, which provides sector exposure to decentralized finance projects. The DeFi fund includes cryptocurrencies such as Uniswap’s UNI, Aave’s LEND, Synthetix Network Token (SNX) and Maker’s MKR.
On the growth of DeFi funds, Bitwise Chief Investment Officer Matt Hougan said, “Investors find the disruptive potential of DeFi both exciting and intuitive.”
Bitwise’s assets have doubled since the fourth quarter of 2020 as more investors seek broad exposure to digital assets. Professional investors are entering the market in greater numbers now that the ‘career risk’ associated with cryptocurrencies has diminished.
Earlier this month, Bitwise filed its intention with the United States Securities and Exchange Commission to launch a new crypto innovators fund. The fund seeks to track the performance of the still-developing Bitwise Crypto Innovators Index made up of companies that derive more than 75% of their income from the digital asset sector.