With a median bid-ask spread of $0.01 and low-cost management fee of 0.20%, BITB is “seeing substantial demand from financial advisors,” says Bitwise CEO.
Bitwise Asset Management, the largest crypto index fund manager in America, announced today that the Bitwise Bitcoin ETF (BITB) surpassed $1 billion in assets under management less than five weeks after the fund’s launch, making it one of the top 25 fastest ETFs in history to reach the milestone.1
Low Cost, Tight Spreads, and Transparency Driving Strong Results
BITB has seen more than $877 million in net inflows since its trading debut on January 11, an average of $36 million per day. Among the factors driving demand are the fund’s low expense ratio, tight bid-ask spreads, and high volume.
- As of February 14, BITB had one of the lowest long-term fees of any bitcoin ETF provider at 0.20%.2
- Since inception, the fund’s median bid-ask spread is $0.01. Bid-ask spreads are the difference between the highest price a buyer is willing to pay for a security and the lowest price a seller is willing to accept. Spreads are a key factor in determining the total cost of buying and selling shares of an ETF.
- The fund’s average daily trading volume was $57 million.
- To foster transparency, BITB was the first bitcoin ETF in the U.S. to publish the bitcoin addresses of its holdings.
- BITB supports the future health of the bitcoin blockchain by donating 10% of its profits to organizations that fund bitcoin open-source development.
“Substantial Demand From Financial Advisors”
“2024 will be a landmark year for bitcoin,” said Bitwise CEO Hunter Horsley. “Eighty-eight percent of financial advisors interested in investing in crypto were waiting for a bitcoin ETF.3 Advisors, who manage north of $20 trillion in the U.S., can now access this asset class largely for the first time. In just the first few weeks, we’ve seen substantial demand for the Bitwise Bitcoin ETF (BITB) from financial advisors. As a specialist, our singular focus is on being the partner investors can rely on to access the opportunities in the space. From what we see, the story of 2024 is just beginning.”
According to Horsley, the ETF format has already proven a “game-changer” for investors, as it enables advisors to manage bitcoin exposure for clients in concert with all other components of wealth management, including asset allocation, tax and estate planning, and financial reporting. “Bitcoin ETFs empower advisors to avoid a longstanding concern: clients using online apps and exchanges outside their workflow to get exposure,” said Horsley. “Solving this pain point has been a key factor behind BITB’s early success.”
Today, over 3,000 wealth teams, RIAs, family offices, and institutional clients trust Bitwise as their specialist partner in the crypto space. Bitwise’s national team of crypto experts is available to meet with investment professionals any time and in person.
Bitwise’s other product offerings include four other crypto-themed ETFs, the world’s largest crypto index fund, private placement funds, alpha solutions, and separately managed account (SMA) solutions. More information can be found at www.bitwiseinvestments.com.
For more information on BITB, and to read the fund’s prospectus, visit BITBetf.com/welcome.
About Bitwise Asset Management
Bitwise Asset Management is the largest crypto index fund manager in America. Thousands of financial advisors, family offices, and institutional investors partner with Bitwise to understand and access the opportunities in crypto. For six years, Bitwise has established a track record of excellence managing a broad suite of index and active solutions across ETFs, separately managed accounts, private funds, and hedge fund strategies. Bitwise is known for providing unparalleled client support through expert research and commentary, its nationwide client team of crypto specialists, and its deep access to the crypto ecosystem. The Bitwise team of more than 60 professionals combines expertise in technology and asset management with backgrounds including BlackRock, Millennium, ETF.com, Meta, Google, and the U.S. Attorney’s Office. Bitwise is backed by leading institutional investors and has been profiled in Institutional Investor, Barron’s, Bloomberg, and The Wall Street Journal. It has offices in San Francisco and New York. For more information, visit www.bitwiseinvestments.com.
Risks and Important Information
The fund is subject to significant risk. The fund is subject to heightened volatility. An investor may lose all their money. The fund is not suitable for all investors.
This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit BITBetf.com/welcome.
The Bitwise Bitcoin ETF (BITB) (the “Fund”) is not an investment company registered under the Investment Company Act of 1940 (the “1940 Act”) and is not subject to regulation under the Commodity Exchange Act of 1936 (the “CEA”). As a result, shareholders of BITB do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act or the protections afforded by the CEA.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The NAV may not always correspond to the market price of bitcoin and, as a result, Creation Units may be created or redeemed at a value that is different from the market price of the Shares. Authorized Participants’ buying and selling activity associated with the creation and redemption of Creation Units may adversely affect an investment in the Shares.
The amount of bitcoin represented by a Share will continue to be reduced during the life of the Fund due to the transfer of the Fund’s bitcoin to pay for the Sponsor’s management fee, and to pay for litigation expenses or other extraordinary expenses. This dynamic will occur irrespective of whether the trading price of the Shares rises or falls in response to changes in the price of bitcoin.
There is no guarantee or assurance that the Fund’s methodology will result in the Fund achieving positive investment returns or outperforming other investment products.
Investors may choose to use the Fund as a means of investing indirectly in bitcoin. Because the value of the Shares is correlated with the value of the bitcoin held by the Fund, it is important to understand the investment attributes of, and the market for, bitcoin.
Bitcoin Risk. There are significant risks and hazards inherent in the bitcoin market that may cause the price of bitcoin to fluctuate widely. The Fund’s bitcoin may be subject to loss, damage, theft or restriction on access. Investors considering a purchase of Shares should carefully consider how much of their total assets should be exposed to the bitcoin market, and should fully understand, be willing to assume, and have the financial resources necessary to withstand, the risks involved in the Fund’s investment strategy.
Liquidity Risk. The market for bitcoin is still developing and may be subject to periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the desired price. Possible illiquid markets may exacerbate losses or increase the variability between the Fund’s NAV and its market price. The lack of active trading markets for the Shares may result in losses on investors’ investments at the time of disposition of Shares.
Regulatory Risk. Future and current regulations by a U.S. or foreign government or quasi-governmental agency could have an adverse effect on an investment in the Fund.
Blockchain Technology Risk. Certain of the Fund’s investments may be subject to the risks associated with investing in blockchain technology. The risks associated with blockchain technology may not fully emerge until the technology is widely used. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Because blockchain technology systems may operate across many national boundaries and regulatory jurisdictions, it is possible that blockchain technology may be subject to widespread and inconsistent regulation.
Nondiversification Risk. The Fund is nondiversified and may hold a smaller number of portfolio securities than many other products. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers.
Recency Risk. The Fund is recently organized, giving prospective investors a limited track record on which to base their investment decision. If the Fund is not profitable, the Fund may terminate and liquidate at a time that is disadvantageous to Shareholders.
Bitwise Investment Advisers, LLC serves as the sponsor of the Fund. Foreside Fund Services, LLC serves as the Marketing Agent for BITB, and is not affiliated with Bitwise Investment Advisers, LLC, Bitwise, or any of its affiliates.
1 Source: Bloomberg
2 Until July 11, 2024, the fund has waived its fee on the first $1 billion in assets.
3 Source: https://bitwiseinvestments.com/crypto-market-insights/the-bitwise-vettafi-2024-benchmark-survey
View source version on businesswire.com: https://www.businesswire.com/news/home/20240215840634/en/
Contacts
Frank Taylor/Ryan Dicovitsky
Dukas Linden Public Relations
Bitwise@DLPR.com
