Today Bitwise has announced the launch of a DeFi Index Fund. Institutional investors can now partake in this fund and obtain exposure to various bluechip DeFi tokens. The new fund will offer accredited investors a vehicle to make a diversified bets on DeFi via a security structure, making them more inclined with the nascent market recognized for its hacks and rug pulls.
Moreover, the new Bitwise fund includes nine DeFi tokens. It involves AAVE, SNX, UNI, MKR, YFI, COMP, UMA, LRC, and ZRX. This fund will provide accredited investors with the capability of investing in DeFi tokens safely and securely. Moreover, the index’s two most significant components are Aave and Synthetix, which carry a weight of 20%. The Bitwise Decentralized Finance Advisory Council also supports the fund. It comprises a group of DeFi experts, including Aleks Larsen, a venture investor at Blockchain Capital, and Avichal Garg, managing partner at Electric Capital.
Bitwise DeFi Crypto Fund has an expense ratio of 2.5%
The Bitwise DeFi crypto funds holds a crypto portfolio that powers DeFi services. The Bitwise Crypto Index Committee supervises and makes modifications to the methodology. An advisory council comprising of five DeFi experts also offers insights to the Bitwise Crypto Index Committee. Moreover, the fund is rebalanced every month with subscriptions and redemptions provided on Tuesday and Thursday every week. Accredited investors should make a minimum investment of $25,000. Additionally, the expense ratio is 2.5%. It involves costs related to tax, custody, accounting, and management fees.
Further, the fund’s custodian is Anchorage, which became the first federally chartered digital bank in U.S. history in January this year. Shortly, shares of the fund may be allowed to be traded openly through secondary markets. Moreover, the news comes after the December 2020 launch of the Bitwise 10 Crypto Index Fund on U.S. OTC markets. In February 2021, the firm began offering its Bitwise Bitcoin Fund on OTCQX, the largest OTC market in the U.S.
Conclusively, this new fund will allow institutional investors to access the more comprehensive and more experimental, DeFi market. If successful, the fund could drastically boost institutional awareness of the industry.