SAN FRANCISCO, Dec. 5, 2018 /PRNewswire/ -- Bitwise Asset Management, creator of the world's first cryptocurrency index fund, today announced the launch of two new low-cost, liquid beta funds, holding bitcoin and ether exclusively. The Bitwise Bitcoin Fund and the Bitwise Ethereum Fund are the second and third strategies in the Bitwise fund family, joining the broad-market Bitwise 10 Private Index Fund.
The launch of the funds is driven by inbound client interest and investor dissatisfaction with existing options, many of which carry premiums, charge exit fees, have lockups, and/or charge expenses to the fund outside the stated management fee.
"The 68% drawdown in bitcoin prices this year has given investors a unique opportunity to enter the market at prices many thought we'd never see again," said Hunter Horsley, Bitwise CEO. "Though an ETF has not yet been approved, investors and advisors like the fund format because it's professionally managed and simplifies access to best-in-class custody, trading, reporting, and tax preparation, and allows for the safe capture of events like hard forks and airdrops."
The Bitwise Bitcoin Fund holds bitcoin and aims to capture the total returns available to investors in the world's largest cryptoasset, including any meaningful hard forks and air drops. The Bitwise Ethereum Fund does the same for ether. Funds safeguard holdings in 100% cold storage with an institutional third-party custodian, and prepare simple K-1 tax documents for investors each year.
The funds are available today in two share classes: Institutional Shares have an all-in expense ratio of 1.0% and a minimum investment of $1 million, while Investor Shares have an all-in expense ratio of 1.5% and a minimum investment of $25,000. Investors can come in and out of the fund weekly, with no lockups, withdrawal fees, or performance fees. The funds are open to U.S.-accredited investors.
"With significant positive developments on the horizon, including the launch of the Bakkt bitcoin futures exchange from ICE, the launch of Fidelity Digital Assets, and the continued movement of institutional investors like Yale University and Stanford University into the crypto space, we have seen significant inbound demand for high-quality bitcoin and ether funds," said Matt Hougan, global head of research for Bitwise. "Our clients have been adding to their positions throughout the downturn, and many who've been following the space for a while are using this opportunity to finally come in."
Both funds are open and taking subscriptions, with the first subscription date scheduled for today, December 5, 2018, at 4 p.m. ET.
Bitwise is a leading provider of cryptoasset index and beta funds. The firm is backed by institutional and individual investors, including Khosla Ventures, General Catalyst, Blockchain Capital, Naval Ravikant, Alison Davis, David Sacks, Elad Gil, Adam Nash, Adam Ludwin, Suna Said, and Avichal Garg. The firm is a partner to individuals, financial advisors, family offices, investment managers, and institutions in navigating cryptocurrency. The team behind Bitwise combines deep expertise in technology, security, indexing, and asset management, and is headquartered in San Francisco.
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Bitwise Asset Management, Inc. and its affiliates (collectively, the "Manager") are furnishing this release (this "Release") to sophisticated prospective investors for informational purposes only in relation to a potential opportunity to subscribe for limited liability interests ("shares") in the Bitwise Bitcoin Fund, LLC and the Bitwise Ethereum Fund, LLC (the "Funds"). This is neither an offer to sell nor a solicitation for an offer to buy Shares in the Fund. Shares will be offered and sold under the exemption provided by Section 4(a)(2) of the Securities Act of 1933 and Rule 506 of Regulation D promulgated thereunder. The Fund will not be registered as an investment company under the Investment Company Act of 1940, as amended. The private placement of shares in the Funds may be offered to certain United States-accredited investors as defined in Rule 501 of Regulation D promulgated under the U.S. Securities Act of 1933. Any offer to sell or solicitation of an offer to buy Shares will be made solely through definitive offering documents, identified as such, in respect of the Funds in compliance with the terms of applicable securities and other laws. Such definitive offering documents, if any, will describe risks related to an investment in the Fund (including loss of the entire investment) and will qualify in their entirety the information set forth in this Release.
No Advice on Investment; Risk of Loss
Prior to making any investment decision in respect of the Funds, each investor must undertake its own independent examination and investigation of the Funds, including the merits and risks involved in an investment in the Shares, and must base its investment decision—including a determination whether shares would be a suitable investment for the investor—on such examination and investigation and must not rely on the Manager or the Funds in making such investment decision. Prospective investors must not construe the contents of this Release as legal, tax, investment, or other advice. Each prospective investor is urged to consult with its own advisors with respect to legal, tax, regulatory, financial, accounting, and similar consequences of investing in the Funds, the suitability of the investment for such investor, and other relevant matters concerning an investment in the Funds. This Release contains a limited overview summary of the terms of the Funds. The summary set forth in this Release does not purport to be complete, and is qualified in its entirety by reference to the definitive offering documents relating to the Funds. Do not place undue reliance on this Release.
SOURCE Bitwise Asset Management