Bitwise announces the establishment of the world’s first NFT index fund.

Bitwise, a crypto index fund manager, has announced the introduction of the first-ever non-fungible tokens index fund, with the goal of providing investors with additional exposure to the expanding NFT industry.

Bitwise announces the establishment of the world's first NFT index fund.
Source: defirate

The crypto index fund manager noted in a press release that the Bitwise Blue-Chip NFT Index Fund product is aimed at investors who are interested in NFTs but have limited time to participate in regular auctions while bidding on art collectibles.

When it first launches, the fund will house the 10 most valuable NFT collections, including CryptoPunks, Bored Apes, Fidenza, and others. The collections have a market valuation of more than $6 billion.

Bitwise stated that the selected collections were weighted based on market capitalisation since it allows for better liquidity and price discovery.

According to Bitwise, the necessity for the fund was prompted by more than $10 billion in NTF transactions in the third quarter of 2021 alone.

NFTs, according to the crypto index fund manager CEO Hunter Horsley, have become an important part of the ongoing cryptocurrency expansion. He said:

“And recently, it’s become clear that any conversation about crypto’s potential must include NFTs, which are fundamentally changing how we think about not just owning art but property rights in general. Being able to invest in some of the NFT movement’s most defining collections as these evolve is an opportunity we wanted to make available to those who are as compelled by the space as we are,”

Bitwise announces the establishment of the world's first NFT index fund.
Source: CNBC

Similarly, Bitwise CIO Matt Hougan recognized that investors should be cognizant of the ongoing dangers. He mentioned the market’s immaturity, volatility, liquidity, and custody issues as items to watch out for.

The NFT index fund joins Bitwise’s recent crypto fund launches, which include the Bitwise DeFi Index Fund and the Bitwise “ex Bitcoin” Index Fund.

The fund is presently offered to select investors for a private placement subscription with a minimum commitment of $25,000. After the initial lock-up period, the fund is structured to allow monthly redemptions.


Coincu News

970x90.gif (970×90)