• Mon. Dec 30th, 2024

Crypto Flocking by Institutions Leads to Bitwise AUM Surpassing $500 Million

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Jan 7, 2021

With the recent developments and global recognition of cryptocurrencies, the industry is now experiencing all-time highs. Following the success of the cryptocurrency industry, one of the major asset management firms has shared some promising results from the year 2020.

The major asset managing firm known as Bitwise Asset Management has announced that it has achieved a new milestone in the year 2020. To be precise, the firm has confirmed that it achieved the milestone in the 4th quarter of the year 2020. The firm confirmed that it has recorded that the user inflow for its products has been the highest and has broken all previous records.

The firm has confirmed that the influx and adoption rate is experienced not just by Bitwise but other crypto-firms as well that are currently in operation. With time, the adoption and demand for the digital-assets is growing and from the looks of it, the number will continue to rise.

Adding to the all-time high influx announcement, the firm also updates the entire cryptocurrency community and its users about its AUM. Bitwise Asset Management firm has confirmed that the firm’s assets under management (AUM) have exceeded the $500 million mark. This information has been shared by the officials of Bitwise Asset Management in Monday’s press-release.

The firm stated that the most surprising thing about its assets under management is that back on October 28, 2020, its AUM was just $100 million. In a matter of two months, the AUM for the firm has surged up to $500 million. This goes onto show the popularity, recognition, and adoption the cryptocurrency industry has gathered in a matter of months.

In addition to this, the firm announced that its current AUM is even greater than the combined AUM the firm had back in 2018 and 2019.

The firm also shared the details around the types of investors that have started joining Bitwise in recent months. As per Bitwise, the majority of the investors belong to corporations, hedge funds, are financial advisers, and other institutes.

One of the most popular products introduced by Bitwise is the Bitwise 10 Crypto Index Fund. This fund provides investors with access and exposure to the largest digital assets. At present, the AUM of the Bitwise 10 Crypto Index Fund alone is more than $400 million. For the time being, the assets in holding for the Crypto Index include Litecoin (LTC), Bitcoin (BTC), and Ethereum (ETH). Apart from these three major cryptocurrencies, there are seven more cryptocurrencies with holdings in the crypto-index.

The firm has confirmed that in recent months it has experienced a spike in its Bitcoin (BTC) and Ethereum (ETH) fund demands. To be precise, the surge was experienced in the 4th quarter of 2020.

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