Bitwise launches a ‘crypto ETF’ in the United States… about a way

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Bitwise also released a new ETF that provides insight to the leading publicly traded companies in the blockchain and crypto industries.

Bitwise Asset Management has launched the Crypto Industry Innovators exchange-traded fund, or ETF.

Unlike the various plans for Bitcoin and cryptocurrency ETFs that provide direct exposure to digital assets that the US Securities and Exchange Commission slams, Bitwise’s new fund, called BITQ, proposes exposure to the shares of leading “public companies that are participants in the growing Bitcoin and cryptocurrency sector.”

BITQ investments are focused on Bitwise’s Crypto Industry Innovators 30 Index, which measures top companies “engaged in actual, material activity in the crypto sector” with at least “$100 million of liquid crypto assets on their balance sheet.”

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A May 12 announcement notes that most companies included in the index derive “at least 75% of their revenue from directly servicing cryptocurrency markets or have at least 75% of their net assets accounted for by direct holding of liquid crypto assets.”

Bitwise CEO Hunter Horsley said that the lack of controlled financial products providing exposure to Bitcoin in the United States has resulted in many investors losing out on the “stellar cryptocurrency returns” generated during recent rallies.

“We’ve heard time and again from clients that the primary challenge has been finding a way to access the incredibly complex and fast-moving crypto space. With BITQ, our aim is to make crypto investment opportunities available through traditional investing platforms and a familiar, liquid, and cost-effective ETF.”

Bitwise’s ranking, which was inspired by Coinbase’s direct listing on the Nasdaq last month, considers crypto companies within 24 hours of their initial public offering or direct listing.

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Although BITQ is the first ETF with the word “crypto” in its name, it is not the first ETF to have exposure to the crypto sector’s leading firms. The Amplify Transformational Data Sharing ETF (BLOKcrypto-heavy )’s portfolio has seen it rank among the 50 top-performing ETFs of 2021 so far while excluding leveraged and inverse goods, with a year-to-date increase of 36.4 percent.

Although the ticker BLOK is just an oblique reference to blockchain, almost every business allocation in the portfolio has direct ties to the crypto and digital asset market. Its top ten holdings — which account for 41% of assets under administration — include market leaders MicroStrategy (MSTR), Square (SQ), Galaxy Digital Holdings (GLXY), and Marathon Digital Holdings (MARA).

BLOK is the single-largest Microstrategy shareholder by percentage distribution, with 8% of its capital committed, and the largest MARA shareholder by amount of shares owned.

 

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