Over the past year, Bitwise – a crypto asset management firm – has managed to put away roughly $9 million for its bitcoin fund.
Bitwise Is Growing Fast
A regulatory form filed with the U.S. Securities and Exchange Commission (SEC) discussed the data and suggested that the money came from more than 40 separate investors. The minimum investment amounted to just under $4,000.
The paperwork was filed with the SEC after Bitwise announced that it was changing its name from Bitwise Bitcoin Fund, LLC to simply Bitwise Bitcoin Fund. It’s unclear what removing the letters LLC does for the name, but hey… to each his own. Either way, people can take part in investing in the fund each week similar with the way mutual funds operate.
Bitwise Bitcoin Fund is a relatively new company in that it was only established in 2018, and thus it is only two years old. During the initial investment period, the company only managed to put away just over $150,000, which means that Bitwise has really come a long way in a rather short period of time. In 2019, the company managed to raise more than $4 million, and 2020 has been its biggest year yet considering there is a near $5 million difference between this year and the last.
It is becoming clear that institutional investors are playing a stronger role in the bitcoin and crypto spaces and that they are beginning to view bitcoin as a “safe haven” of sorts. A potential tool to hedge one’s wealth during times of economic strife. Fiat currencies such as the US dollar are continuing to fall on a regular basis, and bitcoin is being looked at as a replacement currency or something that can keep one’s finances protected.
A Lot of Changes in the Space
Head of research at Bitwise Matthew Hougan explained in a recent interview:
A year ago, advisors were mostly interested in learning about crypto. Now, they’re starting to invest. A year ago, advisors were making small personal investments in our funds. Now, they’re allocating one percent, two percent or more across all their client portfolios. A year ago, advisors were worried about headline risks when investing in crypto and didn’t want to stick their necks out and be first. Now, they’re more worried about falling behind their peers and appearing out of touch with clients. That last change has been quite meaningful. Advisors increasingly feel that they need to be prepared to talk to clients about crypto. Part of that is driven by recent returns. Part is driven by the rising institutionalization of the space (Fidelity, CME, etc.), and part is driven by macroeconomic conditions. We’re still early in this transition, but it’s maturing fast. I think you’ll see flows from this space really ramp up in the next 12 months.