Last month, Bitwise Asset Management submitted an application for a top-10 cryptocurrency ETF. Announced Aug. 15, Bitwise is now launching three new indexes covering the small-total cap segments of the overall cryptocurrency market.
Bitwise Expands Crypto Index Family
Bitwise Asset Management subsidiary Bitwise Index Services LLC is set to launch three additional index funds for investment, according to a press release.
The Bitwise index funds will track various market segments through a new 70 Small Cap Crypto Index, 20 Mid Cap Crypto Index and 100 Total Market Crypto Index.
Bitwise conducted research “on thousands of individual crypto pairs representing 99.9 percent of all eligible cryptoasset volume” and reviewed over 250 cryptocurrencies to fully capture the total market. These index funds are not yet available for investment.
Bitwise will also rename its market benchmark, HOLD 10 Cryptocurrency Index, to the 10 Large Cap Crypto Index. Each new index fund will utilize a 5-year-diluted market cap among other eligibility requirements to face liquidity, volume and custody limitations.
In an official press release, Matt Hougan, global head of research at Bitwise, explained:
“Our indexes are built from the ground up to respond specifically to the cryptomarket. The methodology draws on best practices from the modern indexing of equities, bonds, commodities, and fiat currencies, and pairs them with crypto-native factors to ensure the indexes are safe and replicable. We believe they are the best representation of the investable cryptoasset market in the world.”
The new Bitwise index funds will be available for review on Bloomberg, Reuters, FactSet and other financial data providers. The company also announced free access to its API for researchers and hedge funds that may be interested in complimentary benchmarking services.
Bitwise Introduces Index Advisory Board
To mitigate risks surrounding regulation, security and liquidity, Bitwise launched an index advisory board comprised of industry experts from both traditional finance and cryptocurrency backgrounds.
Currently, the board contains three members–including Hougan; Srikant Dash, the former global head of indexing for Bloomberg; and Spencer Bogart, head of research at Blockchain Capital.
In the official press release, Bogart stated:
“One unique thing about Bitwise is the firm’s ability to blend deep, crypto-specific expertise with in-depth knowledge of institutional asset management and indexing. The Bitwise Crypto Index Advisory Board and the family of Bitwise indexes launching today are proof of that.”
Adding to his statement, Dash conveyed further support for Bitwise’s newly launched indexes:
“Well-constructed indexes and index-linked products are key to the development of efficient investment and risk management in any new asset class. I am pleased to help Bitwise bring such tools to the rapidly evolving cryptocurrency market.”
Cover Photo by Al x on Unsplash