U.S. index fund company Bitwise Asset Management added Ric Edelman, a financial advisor, and best-selling author, to its advisory team on Oct. 3, as per a press release.
San Francisco-based Bitwise was among the first investment funds to offer exposure to cryptocurrency indices via a weighted portfolio. The asset manager chooses ten cryptocurrencies each month based on the latter’s five-year planned issuances and trading behavior and reevaluates all trade volumes and potential risks at the end of each month. After each cycle, Bitwise researchers programmatically recalculate coin rankings to ensure the fund captures the top ten most valued crypto-projects.
Last month, Monero turned out to be the top-performing cryptocurrency in the Bitwise 10 index fund, which posted a 6.5 percent decline. The worse performing currency was Ether, posting a 34.8 percent fall, followed by Bitcoin Cash and Zcash plunges at 29.9 percent and 24.9 percent respectively.
Now, with the addition of Ric Edelman as an advisor to Bitwise, the firm stands to gain from years of extensive market and fund balancing knowledge. He has invested in the Bitwise 10 index fund and is the founder of Edelman Financial Services, a U.S.-based asset manager with $22 billion in assets under management. As part of his advisory role, Edelman will educate and support institutional advisors looking seeking exposure to cryptocurrencies for client portfolios.
Speaking of his role, Edelman stated:
“Every financial advisor needs to educate themselves about this space, and most should be considering an allocation for clients. I look forward to working with Bitwise to help make that a reality.”
Edelman called the crypto asset market “too big to ignore,” and believes Ethereum-based smart contract have the potential to “revolutionize huge portions” of the financial industry. He added that financial managers need to keep up with technological changes, and cryptocurrency exposure is a “part of that effort.
Hunter Horsley, the CEO of Bitwise, noted Edelman’s addition would support Bitwise’s long-term vision of providing “high-quality” exposure to cryptocurrencies to every investor’s portfolio.
Recently, Bitwise surveyed more than 450 financial advisors and concluded that 83 percent had clients seeking exposure to cryptocurrencies or had questions about the rising asset class. However, the advisors noted “education” and “regulatory concerns” were the two most-voiced barriers for financial advisors marking a cryptocurrency allocation for their clients.
For those interested, the Bitwise 10 Index fund is available to accredited U.S. investors at a minimum investment of $25,000; with packages for international investors starting at $100,000. The firm charges an industry-standard management fee of 2.5 percent for Investor Class Units under $1 million and a 2 percent fee for investments over the figure.
Cover Photo by Jeremy Bishop on Unsplash