Bitwise Unveils 3 New Index Funds Targeting Top 100 Coins and Tokens
Bitwise announces the launch of three new crypto indices targeting large and medium cap coins.
Bitwise Index Services announced that it would be launching three new crypto indices in a recent announcement. It also revealed the addition of two new board members to its team.
The company is a subsidiary of Bitwise Asset Management, which created the first cryptocurrency index fund in the world.
The new index funds will cover crypto assets in the small-cap, mid-cap, and total-market categories. In addition, Bitwise announced that it had renamed its HOLD 10 Index that represented the top performing coins in the market.
Bitwise will now provide the following crypto index funds:
- Bitwise 10 Large-Cap Crypto Index (BITX); formerly HOLD10
- Bitwise 20 Mid Cap Crypto Index (BITW20); new
- Bitwise 70 Small-Cap Crypto Index (BITW70); new
- Bitwise 100 Total Market Crypto Index (BITW100) new
Bitwise utilizes its extensive reach to gather data on all investible assets. The firm says that it has analyzed over a thousand cryptocurrency trading pairs and over 200 coins.
The firm carefully researches every coin. It examines how the digital asset’s distribution, its supply inflation, and cold storage capability to ensure each represents accurate investable opportunities.
The index funds capture every digital asset’s market cap weighted and adjusted on a five-year basis. It also has rules that help to reduce the risks occasioned by challenges of liquidity, exchange concentration, security, and regulatory status.
Matt Hougan, the firm’s Global Head of Research, said that:
“Our indexes are built from the ground up to respond specifically to the crypto market.”
Hougan also said that Bitwise had worked on the new cryptocurrency indexes since February. He then added that their methodology incorporates best practices related indexes in equities, commodities, bonds, and fiat currencies.
The company pairs such best practices with factors native to the cryptocurrency industry to ensure crypto indexes are safe and replicable.
Bitwise has announced that the investors can review the new index funds on sites like Bloomberg, Reuters, and FactSet. The firm also asked any researchers and hedge funds interested in carrying out complimentary benchmarking services to access its API.
Bitwise Index Advisory Board
Bitwise also announced that it had formulated an advisory board comprising individuals with expertise from finance, cryptocurrency, and index construction fields.
The advisory board conducts regular meetings aimed at monitoring the indexes and giving or suggesting updates.
The team consists of three members:
- Matt Hougan, Bitwise’s head of global research;
- Srikant Dash, former employee of Bloomberg; and
- and Spencer Bogart, lead researcher at Blockchain Capital
Bogart said that Bitwise was best placed to offer the crypto indexes.
“One unique thing about Bitwise is the firm’s ability to blend deep, crypto-specific expertise with in-depth knowledge of institutional asset management and indexing.”
He added that the launch of the Bitwise Crypto Index Advisory Board and the suite of Bitwise indexes was proof of its seriousness and expertise.
The parent company Bitwise Asset Management filed an application with the US Securities and Exchanges Commission (SEC) in July seeking approval to offer a cryptocurrency index ETF.
The SEC indicated a 45-day extension in which it will consider whether to approve or reject the proposal. Bitwise is optimistic that the regulator will approve the ETF, given its exchange-traded fund is based on an index and not a single coin like those on Bitcoin.