The fund manager’s inflows suggest investors are seeking broad exposure to cryptocurrencies, including Bitcoin and Ether.
Leading crypto fund manager Bitwise Asset Management reached a major
milestone in the fourth quarter of 2020 as inflows into its products
surged to new record highs, underscoring heightened institutional demand
for digital assets.
The firm’s assets under management, or AUM, surpassed
$500 million, according to a Monday press release. That’s a
considerable increase from the $100 million in AUM held on Oct. 28,
2020.
The press release reads:
“Bitwise saw record inflows into its funds during Q4 2020, surpassing the total cumulative inflows of 2018 and 2019 combined.”
Most
of the new demand came from investment professionals such as financial
advisers, hedge funds, corporations and other institutional investors.
The
Bitwise 10 Crypto Index Fund, which provides broad exposure to the
largest digital assets, is by far the most popular product, with over
$400 million in assets under management. The fund holds Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and seven other cryptocurrencies.
Bitwise says demand for its Bitcoin and Ethereum-focused funds also saw higher demand in the fourth quarter.
Hunter
Horsley, Bitwise’s co-founder and CEO, said “The speed at which
professional investors are moving into crypto right now is remarkable.”
Before the new year, Bitwise announced it had liquidated its position in XRP
in response to the lawsuit filed against Ripple Labs by the United
States Securities and Exchange Commission. Beyond the XRP fiasco, the
cryptocurrency market appears poised to expand as more institutional
investors come on board.
David Lawant, a research analyst at Bitwise, recently told Cointelegraph that there’s less “career risk” for entering crypto,
which means more institutions are coming on board. Bitcoin’s growing
appeal as a safe-haven asset that can potentially offset the so-called
“great monetary inflation” has become a key catalyst for adoption, he
said.
source link : https://cointelegraph.com/news/bitwise-aum-surpasses-500-million-as-institutions-flock-to-crypto
