Bitwise has launched a fund that gives institutional investors access to the DeFi industry. The fund index includes Compound, Uniswap, Maker and other projects.
Bitwise Asset Management announced the launch of the Bitwise DeFi Crypto Fund. The fund’s index includes the largest DeFi projects: Compound, Uniswap, Maker and others. Previously, Bitwise launched a cryptocurrency index fund targeting the top ten crypto assets in the OTC market. However, the new fund will allow institutional investors to access the broader and more experimental DeFi market.
“The DeFi industry is looking to transform the traditional financial marketplace by replacing bankers with automated software,” said Matthew Hougan, CIO at Bitwise. “This is a huge market available in trillions of dollars. Of course, DeFi is now extremely risky due to hacks and vulnerabilities. But the projects have significant potential and real growth that deserves people’s attention. ”
Bitwise DeFi Crypto Fund owns a portfolio of cryptoassets that power DeFi projects. The Bitwise Crypto Index Committee monitors the fund index and adjusts it. Aave and Synthetix account for 20% of the index. In addition, the fund is backed by the Bitwise Decentralized Finance Advisory Board, which consists of a group of DeFi experts.
The custodian of the fund is cryptocurrency company Anchorage, which was recently licensed by the Office of the Comptroller of the Currency (OCC) to conduct banking activities in the United States.
Recall that earlier this month, Bitwise filed with the SEC another application to launch a cryptocurrency ETF. The new ETF will track not the price of digital assets, but the stocks of companies operating in the industry.
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