Crypto asset management firm Bitwise announced today it has hit $500 million in assets under management. The firm witnessed record inflows of funds in the fourth quarter.
Crossing the $500 million mark
The firm is now managing over $500 million in assets. Of this, over 80% of assets are now a part of its 10 Crypto Index Fund, which tracks the market value of the top 10 cryptocurrencies. The demand for the fund rose extensively and crossed $400 million in AUM. This follows historic trends where the majority of funds have flown into the index. The firm said that its Bitcoin and Ethereum funds have also seen increased demand.
During Q4 2020, it noticed record inflows of funds, which passed the cumulative total inflows of 2018 and 2019. Investors remained enthusiastic about the crypto markets, throwing their weight behind the top cryptocurrencies and the broader crypto market.
Rising demand from bigger investors
The growing demand from professional/institutional investors like financial advisors, family offices, and hedge funds has led to the manager achieving this milestone. Bitcoin remained in the middle of a bull run in Q4 2020 which improved institutionally interested. In 2017, when the markets entered a similar bull run, the rally was fueled by retail investors.
Bitwise co-founder and CEO Hunter Horsley commented on the demand and said,
“The speed at which professional investors are moving into crypto right now is remarkable. While adoption of crypto as an asset class and conviction around its role in portfolios rapidly expands, we continue to urge all investors to consider the risks associated with investing in cryptocurrencies in general and the Bitwise Funds in particular.”
Bitwise tried to propose cryptocurrency ETFs twice but the US Securities and Exchange Commission (SEC) did not permit it to follow its plans. The SEC wasn’t convinced that crypto markets were mature enough for an ETF product and lacked regulations. It rejected several other ETF applications as well.