Investing in the cryptocurrency markets comes with loftier hazard, equally Bitcoin price fluctuations primarily dominate the market.

Index funds tin can be the solution for those who adopt a less risky selection. Thus, y’all practice not own the underlying nugget, but you can benefit from the fund’s diversification.

There is an increasing number of crypto alphabetize funds since investors are starting to run into the value of index funds vs. direct buying an nugget. Bitwise Asset Management is the globe’southward largest crypto fund director, with assets under management of $one.three billion.

They offer various funds for investors to diversify their electric current portfolios, mainly targeted at those with an appetite for cryptocurrency.

One of the Bitwise funds is the Bitwise x Crypto Index fund that tracks the meridian ten cryptocoins.

Crypto fund overview: what is Bitwise 10 Crypto Index Fund?

BITW chart

The BITW fund’s inception was on 22 November 2017, and the custodian of the fund is Coinbase Custody Trust Company, LLC. Currently, this fund has 52 investors.

The Bitwise x Crypto Alphabetize fund tracks an Alphabetize comprising ten cryptocurrencies with the highest value. The fund provides shares tradable under the ticker BITW via brokers that support index funds.

The BITW fund has an expense ratio of 2.5%. To engagement, the fund has 20,155,831 shares outstanding.

Assets are held in 100% common cold storage with multi-signature configuration. Bitwise uses a third-party custodian and continuously evaluates security developments to stay in line with manufacture best practices.

What cryptocurrency is the Bitwise 10 Crypto Index Fund invested in?

This fund tracks the top ten cryptocurrencies with the highest value. It undergoes monthly rebalancing, and its electric current holdings are displayed below.

BITW holdings

The coins on the listing include the most popular and high-value cryptocurrencies. Still, the fund rebalances the holdings due to the market fluctuation. Therefore, the list might change depending on the money’s ranking in terms of value.

Bitcoin and Ethereum brand up over 80% of the fund’s holdings, and it splits it every bit roughly 61% and 26%, respectively. The rest of the assets comprise the less valuable coins; all the same, these are still amongst the meridian ten.

How to invest in Bitwise 10 Crypto Alphabetize Fund?

The fund is open up to individual, institutional, and investment managers who have an interest in cryptocurrencies.

The Bitwise 10 Crypto Index fund trades on the OTC markets. Accredited investors can sign up via the website under the private placement portal. Investors have to upload personal details and the relevant supporting documentation for approving.

Individual investors can buy and sell shares under a brokerage that supports the fund in the secondary markets.

As potential investors, information technology is good to note that the fund has a steep minimum requirement of $25,000.

Furthermore, investors that apply via the private placement service have to undergo a 12-month waiting flow until shares are bachelor for sale. In improver, publicly traded shares may be on offer at a premium or discount to the fund’s net nugget value.

How big is Bitwise 10 Crypto Alphabetize Fund?

The BITW fund has $1,040 million assets under direction, and it benchmarks the Bitwise 10 Large Cap Crypto Index. However, market cap information is not available.

fund details

The fund has raised a total of $84.five million of funding in three rounds. The funding occurred in Dec 2017, May 2019, and June 2021. Well-nigh investors participated in the June 2021 round, totaling 42, raising $seventy million.

Is Bitwise 10 Crypto Index fund safe?

It is essential to note the risks associated with crypto alphabetize funds. Therefore, we will list the pros and cons so investors tin make an informed decision.

Pros	Cons
BITW gives investors exposure to the pinnacle-performing crypto coins.	The fund has a high expense ratio of 2.five% per annum.
Investors can benefit from the fund without owning any crypto.	The fund has a minimum investment of $25,000 which is too high for the average individual investor.
The fund offers diversification by tracking a wide range of crypto avails and not one instrument only, reducing investors’ risk.	Accredited investors can benefit nether the private placement only, and individual investors can merely access the fund via a banker on the secondary market.
The fund adjusts the monthly holdings co-ordinate to the market place since the value of crypto coins fluctuates massively.	Private placement investors accept to put up the $25,000 to starting time, and they have to undergo a 12-month waiting catamenia to sell shares.
Operation is anticipated due to algorithm tracking and analysis of real-time market data.
The fund invests in 70% of the crypto market and has an annualized render of 106%.
Individual investments who opt to merchandise in the secondary market place require no minimum investment.

Concluding thoughts

As we mentioned, the Bitwise 10 Crypto Alphabetize fund has many pros, merely we cannot ignore the cons. To kickoff, the fund requires a meaning investment, which makes it difficult for individuals to have advantage of the opportunity.

Furthermore, the operation has been a scrap flat, and the returns are non very big compared to traditional alphabetize funds. The fund’due south expense ratio is also a betoken to consider and makes it an expensive investment.

Therefore, investors should carefully consider whether this is a viable option based on our shared facts.