Bitwise launches DeFi-asset index fund

Bitwise Asset Management announced the launch of the Bitwise DeFi Crypto Index Fund. It will give accredited investors access to a diversified basket of tokens in the decentralized finance sector.

Bitwise have launched a new DeFi fund, offering accredited investors exposure to $UNI, $AAVE, $SNX, $MKR, $COMP, $UMA, $YFI, $ZRX and $LRC https://t.co/KZd17NyOJX pic.twitter.com/DEFZ4EQfPA

— Bloqport Insights (@Bloqbot) February 17, 2021

In the press release, the company\’s chief investment strategist Matt Hogan noted the amount of value locked in DeFi protocols at $40 bln, the monthly turnover of decentralized exchanges at $30 billion and auto-lending program limits up to $200 million — as milestones for the DeFi sector. The executive called this segment the \”main story of 2021.\”

According to the methodology, the investment committee reviews index components for risk and rebalances the basket monthly. The weight of each token is determined by the project\’s market capitalization.

As of February 16, the Bitwise DeFi Crypto Index was constituted as follows:

Data: Bitwise.

The fund\’s advisory council comprises experts in decentralized finance from partners, investors and founders of Framework Ventures, ParaFi Capital, Electric Capital, Blockchain Capital and DeFi Pulse.

The fund\’s custodian is Anchorage, a federal crypto bank, which in January received the relevant license from the Office of the Comptroller of the Currency (OCC) within the U.S. Treasury.

The fund\’s management fee and other expenses total 2.5%.

The Bitwise DeFi Crypto Index is available by subscription. Shares may be acquired in private placements. The company plans to bring the Bitwise DeFi Crypto Index Fund to the secondary market.

In February, the St. Louis Fed published a report that assessed the potential for integrating DeFi into the financial system.

Analysts at AllianceBernstein pointed to the coming competition between the DeFi sector and banks.

Earlier in February, Bitwise filed an application for the launch of the Bitwise Crypto Innovators ETF, aimed at replicating the momentum of startups bringing innovations to the cryptocurrency space.

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