Cryptocurrency has evolved from a niche digital experiment into a mainstream financial asset class. As institutional and retail interest grows, so does the demand for professional, regulated investment vehicles that offer secure and diversified exposure to the crypto market. At the forefront of this transformation stands Bitwise Asset Management, the largest crypto index fund manager in the United States.
With a proven track record spanning over seven years, Bitwise has built a reputation for excellence in managing a wide range of cryptocurrency investment products — from exchange-traded funds (ETFs) to private funds and separately managed accounts (SMAs). Trusted by thousands of financial advisors, family offices, and institutional investors, Bitwise combines deep technical expertise with traditional asset management principles to deliver intelligent access to digital assets.
Core Investment Offerings
Bitwise offers a comprehensive suite of investment solutions designed to meet the needs of diverse investor profiles. These products provide exposure across major cryptocurrencies, innovative blockchain sectors, and emerging Web3 technologies.
Bitwise 10 Crypto Index Fund (BITW)
The Bitwise 10 Crypto Index Fund is the firm’s flagship offering. It tracks an index of the 10 largest cryptocurrencies by market capitalization, rebalanced monthly to reflect market dynamics. As of May 15, 2025, BITW had an estimated net asset value (NAV) of $68.64 per share and approximately $1.4 billion in assets under management (AUM).
BITW trades on the OTCQX® Best Market under the ticker symbol "BITW," allowing retail investors to buy and sell shares through any standard brokerage account. While currently structured as a publicly traded trust, Bitwise has expressed openness to converting BITW into a fully regulated ETF if the SEC permits direct crypto holdings in such vehicles.
👉 Discover how BITW can diversify your portfolio with exposure to top digital assets.
Exchange-Traded Funds (ETFs)
In response to growing demand for regulated crypto access, Bitwise launched several ETFs following the U.S. Securities and Exchange Commission’s approval of spot Bitcoin ETFs in January 2024. These include:
- BITB: A spot Bitcoin ETF providing direct exposure to Bitcoin.
- ETHW: An Ethereum-focused ETF offering investors transparent access to Ethereum.
- BITQ: Tracks the Bitwise Crypto Innovators 30 Index, which includes companies generating significant revenue from crypto-related activities.
- BWEB: A Web3 ETF targeting firms building decentralized internet infrastructure.
These ETFs represent a major milestone in crypto adoption, offering investors a familiar, liquid, and SEC-compliant way to gain exposure to digital assets.
Private Funds and Separately Managed Accounts (SMAs)
For accredited investors and institutions seeking customized strategies, Bitwise offers private funds and SMAs focused on high-growth areas like decentralized finance (DeFi), NFTs, and large-cap cryptocurrencies.
SMAs provide an added layer of transparency — investors directly own the underlying crypto assets, which are held by qualified custodians such as Fidelity Digital Asset Services, Coinbase Custody, Anchorage Digital Bank, and Gemini. This structure allows financial advisors to monitor holdings in real time and integrate them seamlessly into broader wealth management plans.
Bitwise has partnered with Eaglebrook Advisors to offer three SMA strategies:
- Bitwise 10 Crypto Index Strategy
- Bitwise Crypto Category Leaders Strategy
- Bitwise BTC/ETH Equal Weight Strategy
Institutional Expertise and Client Support
Bitwise is more than just a product provider — it’s a strategic partner for financial professionals navigating the complexities of crypto investing. The firm employs over 90 professionals with backgrounds at leading institutions like BlackRock, Millennium, Meta, Google, and the U.S. Attorney’s Office. This blend of technology and finance expertise enables Bitwise to deliver robust research, risk management frameworks, and ongoing client education.
The company maintains a nationwide team of crypto specialists who work directly with advisors and institutions to answer questions, provide market commentary, and support portfolio integration.
Global Expansion Through Strategic Acquisition
To strengthen its international presence, Bitwise acquired ETC Group, a London-based issuer of crypto exchange-traded products (ETPs). This strategic move significantly expanded Bitwise’s footprint in Europe and contributed to a combined AUM of approximately $4.5 billion.
With offices in San Francisco, New York, and London, Bitwise is positioned to serve clients across North America and Europe, offering localized support and compliance with regional regulations.
Commitment to Security and Best Practices
Given the unique risks associated with digital assets, custody and security are central to Bitwise’s operational model. The firm partners exclusively with regulated, third-party custodians that adhere to rigorous security standards. These custodians undergo continuous evaluation to ensure alignment with evolving industry best practices.
Additionally, Bitwise’s funds follow a unified fee structure — ranging from 0.85% to 3.0% — that includes custody, administration, and audit costs. There are no performance fees, ensuring fee transparency for investors.
👉 Learn how secure custody solutions protect your digital asset investments.
Methodology and Rebalancing Discipline
Bitwise employs a rules-based approach to index construction and fund management. Its crypto indexes are reconstituted based on predefined criteria, including market cap, liquidity, and security considerations. Funds tracking these indexes are rebalanced the business day after each index adjustment, ensuring consistency and minimizing tracking error.
This disciplined methodology helps mitigate risks related to market manipulation, illiquidity, or technological vulnerabilities — key concerns for institutional investors.
Frequently Asked Questions (FAQ)
Q: Is BITW an ETF?
A: Currently, BITW is a publicly traded trust listed on the OTCQX market. While not yet classified as an ETF, it offers similar liquidity and transparency. Bitwise will consider converting it to an ETF if regulatory conditions allow direct crypto holdings.
Q: Who can invest in Bitwise private funds?
A: Private placement offerings are available only to accredited investors or qualified purchasers under Regulation D, Rule 506(c) of the Securities Act.
Q: How does Bitwise manage custody risk?
A: Bitwise uses top-tier custodians like Fidelity Digital Assets and Coinbase Custody. These institutions implement advanced security protocols, including cold storage and multi-signature wallets.
Q: What causes premiums or discounts in BITW shares?
A: Imbalances between supply and demand can lead to market prices deviating from NAV. Chief Investment Officer Matt Hougan has published detailed analyses explaining these dynamics.
Q: Are there performance fees on Bitwise funds?
A: No. All funds operate under a unified fee structure with no performance-based incentives.
Q: How often are Bitwise indexes rebalanced?
A: Indexes are rebalanced monthly based on market data as of the last business day of each month.
👉 Explore regulated crypto investment pathways designed for long-term growth.
Final Thoughts
As cryptocurrency continues its journey toward broader financial integration, firms like Bitwise Asset Management play a critical role in bridging innovation with investor protection. By combining rigorous research, institutional-grade infrastructure, and a client-first philosophy, Bitwise empowers advisors and investors to participate confidently in the digital asset revolution.
Whether through ETFs, SMAs, or private funds, Bitwise delivers diversified, secure, and transparent access to one of the most dynamic markets of the 21st century.
Core Keywords: cryptocurrency investment, crypto index fund, spot Bitcoin ETF, decentralized finance (DeFi), Web3 ETF, crypto custody, institutional crypto investing