Bitwise Launches a New DeFi Exclusive Fund Covering Nine Hot Coins


  • Digital asset manager Bitwise Asset Management has launched an all DeFi (decentralized finance) fund, providing exposure to the hot and burgeoning sector.

The Bitwise DeFi Crypto Index Fund was launched on Wednesday that will track a total of nine DeFi coins viz. Uniswap (UNI), AAVE, Synthetix (SNX), Maker (MKR), Compound (COMP), UMA, Yearn Finance (YFI), 0x (ZRX), and Loopring (LOOP).

In 2021 so far, these coins have gained immense value with AAVE up 406%, MKR 346%, UNI 338%, LOOP 333%, ZRX 305%, UMA 245%, COMP 210%, SNX 179%, and YFI 97%.

In its official announcement, Matt Hougan, the CEO of Bitwise called DeFi the story of 2021, pointing to the ”incredible” growth and activity in the market.

The total DeFi exploded over the last summer and now continues to gain the attention of a wider audience. So far, the total sector has a market cap of $84 billion and $55.6 billion in TVL (total value locked), as per CoinGecko.

While the possibilities in DeFi are “very exciting” the space is very nascent and Bitwise aims to minimize the risk of picking a dud. Hougan told Bloomberg,

“There’s going to be issues, not everything’s going to work out, there’s probably even going to be some blow-ups, but you want exposure to the theme.”

“So a diversified, index-based approach can make all the sense in the world. You don’t have to monitor it, the index rebalances on a monthly basis, you don’t have to watch to see what new hot asset is emerging.”

The new fund has an expense ratio of 2.5% including costs related to custody, tax, accounting, and management fees.

Anchorage Digital Bank, which became the first federally chartered digital asset bank in January and currently secures over $5 billion in crypto assets, is chosen as its custodian.

The Bitwise DeFi Crypto Index Fund is only open to accredited investors and may seek to facilitate public trading of shares in a secondary market.

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