Crypto asset management firm Bitwise has announced today that its Asset Under Management (AUM) has surpassed $100 million following an increased demand for its Crypto Index Fund from institutional investors.
The Bitwise 10 Crypto Index Fund is a tool that tracks the market value of the top ten cryptocurrencies, including Bitcoin (BTC), Ether, and Litecoin (LTC).
The San Francisco-based digital asset manager said its fund is available only to private investors; however, plans are being made to provide the shares to the public before the year ends.
More institutional interest in crypto
Matt Hougan, Chief Investment Officer at Bitwise, said more professional investors are showing interest in cryptocurrencies as the challenges that had hindered these clients from interacting with cryptos are “being swept aside.”
When Bitwise launched in 2017, the crypto space was mostly saturated with retail investors with very few institutional clients indicating interest in digital currencies, said Hunter Horsley, Bitwise’s Chief Executive Officer.
However, in recent times, the narrative has changed as more institutional investors have ventured into the crypto space.
“The recent entrance of firms like PayPal, Square, Fidelity, CME, Nomura, Facebook, among others has convinced many who were previously cautious that it’s time to reevaluate,” Horsely added.
According to a Bitwise survey published in January, more institutional investors are expected to adopt cryptocurrencies this year. The report saw an increase in institutional investors’ interest in the asset class from 6% to 13%.
The survey which was conducted in December 2019, featured more than 400 U.S.-based respondents, including independent registered investment advisors, broker-dealer representatives, financial planners, and wirehouse representatives.
Several top corporations have turned to crypto this year to save them from the economic meltdown ushered in by the novel coronavirus (COVID-19) pandemic.
Last month, MicroStrategy went on a Bitcoin (BTC) purchase spree that saw it accumulated a total of 38,250 BTC at the rate of $425 million at the time.
MicroStrategy’s BTC value has since skyrocketed to over $506 million, making a profit of $81 million for the firm.
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