World’s first crypto industry ETF met with sharp demand from
investors seeking new exposure to the fast-growing space.
Bitwise Asset Management, the world’s leading crypto asset index
fund manager, announced today that the Bitwise Crypto Industry
Innovators ETF (NYSE: BITQ) has surpassed $100 million in assets
under management less than six months after the fund’s May 11th
inception. The milestone marks a significant step in the growth of
the BITQ fund, the first crypto equities ETF with “pure play”
exposure to the companies driving the fast-growing crypto
economy.
Designed to offer investors a way to participate in the rise of
crypto markets without the challenges of directly holding and
having to choose cryptocurrencies, BITQ invests in companies that
provide the core infrastructure and services necessary to trade,
secure, or maintain crypto assets and their underlying platforms.
At each rebalancing, at least 85% of BITQ’s holdings are firms that
derive more than three-quarters of their revenue from
crypto-related businesses (Tier 1 companies), with up to 15% of
holdings reserved for more diversified companies making meaningful
investments in the space (Tier 2). The fund’s performance has shown
meaningful correlations to crypto asset prices but with less
volatility than crypto assets themselves.1
“Many investors are turning to BITQ as the most direct way to
gain ‘picks and shovels’ exposure to the booming crypto market,”
said Matt Hougan, Chief Investment Officer of Bitwise Asset
Management. “But these companies are also interesting investments
in their own right: They’re pioneers in disruptive technology that
are among the fastest-growing and most profitable companies in the
world today.” According to a recent research
paper, median annual revenue growth for Tier 1 constituents
of the Bitwise Crypto Innovators 30 Index — the index on which BITQ
is based — is 37 times that of the S&P 500 as a whole, with
higher net margins.2
“Investors and advisors today see extraordinary opportunities in
the crypto sector,” said Hunter Horsley, Chief Executive Officer of
Bitwise Asset Management. "Our singular focus at Bitwise is helping
them access the full range of opportunities emerging in the
fast-growing space. We're excited to see BITQ hit this important
milestone so quickly. As the first crypto industry equity ETF to
scale the $100 million asset mark, it is proving another valuable
tool for crypto investors."
Bitwise manages a growing suite of investment funds, including
one of the largest crypto index funds. The firm focuses on
partnering with investment professionals to help them and their
clients understand and access crypto markets strategically. Today,
Bitwise serves RIAs, multifamily offices, financial advisors, and
other institutional managers.
Bitwise developed the Bitwise Crypto Innovators 30 Index on
which BITQ is based with input from Moorgate Benchmarks, a
London-based index calculation and benchmark administration company
recently acquired by Morningstar, known for its deep expertise in
the index space. Exchange Traded Concepts, an ETF platform
provider, serves as the investment adviser to the BITQ fund, and
SEI Investments Distribution Co., a provider of investment
management services, is the fund’s distributor.
About Bitwise Asset Management
Based in San Francisco, Bitwise is one of the largest and
fastest-growing crypto asset managers. As of October 15, 2021,
Bitwise managed more than $1.5 billion across an expanding suite of
investment solutions. The firm is known for managing the world’s
largest crypto index fund and pioneering products spanning Bitcoin,
Ethereum, DeFi, and crypto-focused equity indexes. Bitwise focuses
on partnering with financial advisors and investment professionals
to provide quality education and research. The team at Bitwise
combines expertise in technology with decades of experience in
traditional asset management and indexing, coming from firms
including BlackRock, Blackstone, Facebook and Google, as well as
the U.S. Attorney’s Office. Bitwise is backed by leading
institutional investors and asset management executives, and has
been profiled in Institutional Investor, CNBC, Barron’s, Bloomberg
and The Wall Street Journal.
RISK DISCLOSURE AND IMPORTANT INFORMATION
Carefully consider the fund’s investment objectives, risk
factors, charges, and expenses before investing. This and
additional information can be found in the Fund’s full or summary
prospectus, which may be obtained by visiting www.BITQETF.com.
Investors should read it carefully before investing.
Investing involves risk, including the possible loss of
principal. There is no guarantee or assurance that the methodology
used to create the Index will result in the Fund achieving positive
investment returns or outperforming other investment products.
Indices are unmanaged and do not include the effect of fees. One
cannot invest directly in an index.
The Fund is non-diversified and will not invest in crypto assets
directly or through the use of derivatives and also will not invest
in initial coin offerings. The Fund may, however, have indirect
exposure to crypto assets by virtue of its investments in Crypto
Industry Innovators that use one or more crypto assets as part of
their business activities or that hold crypto assets as proprietary
investments. Diversification does not ensure a profit or guarantee
against a loss.
In addition to the normal risks associated with investing,
international investments may involve risk of capital loss from
unfavorable fluctuation in currency values, from differences in
generally accepted accounting principles or from social, economic
or political instability in other nations. Emerging markets involve
heightened risks related to the same factors as well as increased
volatility and lower trading volume. Narrowly focused investments
and investments in small companies typically exhibit higher
volatility.
Investors in the Fund should be willing to accept a high degree
of volatility in the price of the Fund’s shares and the possibility
of significant losses. An investment in the fund involves a
substantial degree of risk.
Certain of the Fund’s investments may be subject to the risks
associated with investing in crypto assets, including
cryptocurrencies and crypto tokens. Because crypto assets are a new
technological innovation with a limited history, they are highly
speculative asset. Future regulatory actions or policies may limit
actions that can be taken with regard to crypto assets. The price
of a crypto asset may be impacted by the transactions of a small
number of holders of such crypto asset. Crypto assets may decline
in popularity, acceptance or use, which may impact their price.
The technology relating to crypto assets and blockchain is new
and developing. Currently, there are a limited number of publicly
listed or quoted companies for which crypto asset and blockchain
technology represents an attributable and significant revenue
stream.
Shares of ETFs are bought and sold at market price (not NAV) and
are not individually redeemed from the Fund. Brokerage commissions
will reduce returns.
Exchange Traded Concepts, LLC serves as the investment advisor
of the fund. The Fund is distributed by SEI Investments
Distribution Co. (SIDCO), which is not affiliated with Exchange
Traded Concepts, LLC or any of its affiliates.
______________________________
1 Volatility is the statistical measure of how widely an asset’s
returns fluctuate over a given time period. 2 Source: Data from
FactSet, updated October 25, 2021. An earlier version of this
analysis appeared in Bitwise Asset Management’s white paper,
“Crypto Equities: A Picks and Shovels Approach to Investing in
Bitcoin and Crypto” (Sept. 2021).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211101005617/en/
Frank Taylor / Ryan Dicovitsky, Dukas Linden Public Relations,
Bitwise@DLPR.com
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