Bitwise, a cryptocurrency investment company, has placed its index fund shares on the OTCQX market (OTC Markets Group), making them available for trading on traditional brokerage accounts. This was reported by The Block.
The shares of the index fund are quoted under the BITW ticker and are available for investors through brokerage accounts Fidelity, Charles Schwab, E*Trade and TD Ameritrade.
BITW tracks the Bitwise 10 Large Cap Crypto Index, which gives investors access to the ten largest crypto assets. As at 30 November, the fund had: 75% in Bitcoin, 13% on the air, the remaining 12% in Lightcoin, XRP, Chainlink, Tezos and other Crypto Bank cryptographic currencies. Index constituents are checked for liquidity and storage risks; the index is balanced each month.
„Index funds have become the dominant way for investors to enter the stock market. We think this will happen to the crypt currency as well,“ said Matthew Haugan, head of research at Bitwise, in a comment for The Block.
Grayscale funds, a competitor to Bitwise, have long been available on OTC markets. Grayscale also offers an index fund called the Digital Large Cap Fund (GLDC). When asked how BITW differs from GLDC, Haugan said that BITW is cheaper (2.5% compared to 3% of the GLDC management fee) and that it is a US security. „BITW is a trust in the US, GDLC is a LLC in the Cayman Islands,“ he said.
Grayscale is currently the leading investment company in the cryptovoltaic market with more than $12 billion in assets under management and more than $100 million in total assets under management of Bitwise.