Bitwise launches “Bitwise Crypto Industry Innovations ETF” – the first ETF listed in the USA under the name “cryptocurrency”
The cryptocurrency asset management company Bitwise has announced the launch of the “Bitwise Crypto Industry Innovations ETF” – the first ETF listed in the USA under the name “cryptocurrency”. Bitwise manages over $ 1.5 billion in assets.
The Bitwise ETF is listed on the New York Stock Exchange under the ticker BITQ. The company developed the Bitwise Crypto Industry Innovators 30 Index -ETF to track and focuses on 30 companies with significant crypto activities with at least $ 100 million in liquid crypto assets on balance sheet. In addition, the companies in the index must generate at least 75% of their income from “directly serving the crypto market” or distribute at least 75% of their net assets to stocks.
Matt Hougan, Bitwise CIO, listed in Press release that “more and more publicly traded companies are investing in crypto” and that the ETF intends to “identify these companies and give investors access”.
ETFs are still a sticking point in the crypto talk. For example, Canadian asset manager Purpose Investments announced an Ethereum ETF on the Toronto Stock Exchange last month. Other companies like Fidelity, Grayscale, and Kryptoin are also working on their respective ETFs.
In view of the rapid growth of companies, the BITQ ETF in particular will implement a “fast entry” rule. This rule would allow the ETF to assign a company’s position just one day after that company’s IPO; For example, when Coinbase was listed last month, the BITQ ETF was able to allocate 10% of the company’s index price just one day later. The fund will include crypto-based stocks and not specific cryptocurrencies.
Bitwise continues to expand its crypto portfolio, including the first “DeFi” crypto fund.
The BITQ ETF’s net worth is currently around $ 1.2 million. In addition to the above-mentioned Coinbase, which makes up over 10% of the fund, Microstrategy, Galaxy Digital, Riot Blockchain and Voyager Digital are among the other top positions.
While small-cap companies are naturally present, large companies like PayPal, Square, and AMD are also included. Bitwise authorizes stocks that fall into one of two pools. First, tier 1 companies are described as “crypto innovators” and are likely to be more volatile. In second place are Tier 2 companies with a market capitalization of over $ 10 billion.
According to Bitcoinist