The firm assures that DeFi services will eradicate intermediaries from Wall Street. The Bitwise Cryptocurrency Index is under the custody of Anchorage Digital Bank, N.A
The firm Bitwise Asset Management, a top-tier crypto fund manager, announced the first decentralized finance fund (DeFi) through a statement on February 17, 2021.
The company explained that the new Bitwise fund has a portfolio based on the cryptocurrencies that power DeFi services and seeks to follow the Bitwise decentralized finance crypto index. Positions are screened for significant risks, weighted based on market capitalization, and rebalanced monthly.
Bitwise’s Decentralized Finance Advisory Council will support the firm’s crypto index committee. The document ensures that the Council gathers a group of experts in DeFi, leaders in the industry who offer information on the emerging sector. Currently, the fund’s expense ratio is 2.5%. This Council includes expenses related to taxes, custody, accounting, and management fees.
The California-based company expressed in the text that decentralized finance refers to the emerging category of peer-to-peer financial digital technologies that activate commerce, interest-bearing loans, and other functions. The company can achieve this status by using public and crypto active blockchains instead of legacy systems.
Anchorage Digital Bank, N.A. is the custodian of the Bitwise Crypto Index. Anchorage received its federal license to operate as a digital asset bank last January. Anchorage currently secures nearly $ 5 billion in cryptocurrency.
The statement also adds that the fund is now available to accredited investors as a private placement, and a subscription process is public.
What’s the Mission Of the DeFi Crypto Fund?
The firm explains that the DeFi services intend to eradicate traditional Wall Street intermediaries, allowing more comfortable and faster operation, with availability for 24 hours, seven days a week, without minimums or paperwork as a requirement, and leading processes among transparency and audibility.
Bitwise is the world’s largest cryptocurrency index fund provider, with over $ 800 million in assets under management for the Bitwise 10 Crypto Index Fund.
The launch of the new Indexed Fund comes when the DeFi market has experimented with explosive growth. According to data by defipulse.com from December 2020 to February 2021, the total capitalization of the DeFi market is 42 billion. At this point, investor interest is also increasing.
DeFi designates a set of financial applications based on blockchain networks, which initially do not need intermediaries to function. The DeFi ecosystem seeks to challenge legacy systems and harness the power of the blockchain and cryptocurrencies. Matt Hougan, chief investment officer at Bitwise Asset Management, said:
DeFi is the story of 2021. The growth and market activity are incredible. Today decentralized trading venues handle more than $ 30 billion in volume per month, automated loan programs that make individual loans as large as $ 200 million, and the total estimated value of funds currently locked in DeFi-related contracts recently crossed $ 40 billion.
By: Jenson Nuñez