San Francisco-based Bitwise Asset Management has introduced the official launch of the Crypto Industry Innovators exchange-traded fund (ETF). After a variety of rejected proposals for Bitcoin ETFs from the United States Securities and Exchange Commission (SEC), the brand new fund may present entry to crypto-adjacent belongings.
Specifically, Bitwise’s new fund, dubbed ‘BITQ’, gives traders publicity to shares of “public companies that are participants in the growing Bitcoin and cryptocurrency sector.”
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The belongings had been chosen based mostly on Bitwise’s “Crypto Industry Innovators 30 Index,” which incorporates corporations which might be “engaged in actual, material activity in the crypto sector.”
According to an official announcement, a lot of the corporations included on the record earn “at least 75% of their revenue from directly servicing cryptocurrency markets or have at least 75% of their net assets accounted for by direct holding of liquid crypto assets.” Additionally, the corporations should maintain “$100 million of liquid crypto assets on their balance sheet.”
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“Just as e-commerce and mobile changed the way the world works, bitcoin and crypto are creating disruptive change today,” says a press release on BITQ’s official web site. “Bitwise Crypto Industry Innovators ETF (NYSE: BITQ) can potentially help investors capitalize on this wave of innovation.”
“Many Investors Have Had to Watch from the Sidelines” While Others Reaped “Stellar Cryptocurrency Returns,”
For some traders within the United States, BITQ stands out as the closest obtainable possibility when it comes to having publicity to cryptocurrencies. Bitwise Chief Executive, Hunter Horsley stated that the dearth of regulated cryptocurrency funding merchandise within the United States has not gone unfelt.
“Over the past few years, many investors have had to watch from the sidelines as a select few have reaped the rewards of stellar cryptocurrency returns,” Horsley stated in an official assertion. “We’ve heard time and again from clients that the primary challenge has been finding a way to access the incredibly complex and fast-moving crypto space.”
“With BITQ, our aim is to make crypto investment opportunities available through traditional investing platforms and a familiar, liquid, and cost-effective ETF. We are thrilled to see this space continue to grow as investors increasingly gravitate toward this transformative asset class.”
A report from CoinTelegraph identified that whereas BITQ stands out as the first regulated fund to embrace the phrase “crypto” in its title, it isn’t the primary to supply direct publicity to the crypto sector’s main corporations. For instance, the Amplify Transformational Data Sharing ETF (BLOK) has included shares of a variety of crypto corporations; the fund has gained 36.4 % up to now this yr, putting it among the many 50 best-performing ETFs of 2021.