More players on Wall Street are adopting bitcoin and other crypto-assets as a new vehicle that has the ability to deliver amazing growth opportunities, and investors are reaping the benefits. An index fund operated by Bitwise, for example, has delivered a 45% return in its first two months.
The cryptocurrency HOLD 10 Private Index Fund, which is operated by Bitwise Asset Management released its performance statistics since its inception last fall. The results are quite interesting as in its first two months, investors were greeted with a 45% return. Bitcoin was up 39% compared with 78% for the HOLD 10 in the December Bull market as compared to the BTC fall of 27% compared with just 18% for the fund in the January bear market.
Hunter Horsley, CEO of Bitwise stated, “Several hundreds of investors have been accepted into the fund since the inception. The range includes engineers, doctors, professors to family offices and billionaires. Currently due to the regulation of private funds, only accredited investors are being able to witness the benefits but our goal is to be able to serve anyone.” Excluding the worth of their primary residence, an individual must have a net worth of at least $1,000,000 to be considered as an accredited investor in the US.
The HOLD 10 Index has very low correlations to traditional asset classes which are especially important for diversified portfolio investors. The fund holds BTC, ETH, BCH, XRP, DASH, LTC, XMR, EOS, XLM, and NEO as of February 1.
Bitwise announced the hiring of Matt Hougan, the man who wrote the book on ETFs. This move illustrated how cryptocurrency is further becoming a mainstream financial asset class. Joining the crypto index firm as vice president of Research and Development, he was previously CEO of Inside ETFs, and before that the CEO of ETF.com.
A spokesperson for Blockchain Capital, which is an investor in Bitwise commented, “Rules-based beta options are increasingly becoming a priority as crypto-assets become more and more mainstream. Activities like indexing, exchange-traded products, and institutional research which has Matt’s expertise, complements the team’s expertise in software, and will help Bitwise continue to be a best-in-class partner to investors.”