The Bitwise Crypto Industry Innovators ETF (NYSE:BITQ) is the first crypto-adjacent ETF (exchange-traded fund) for the US market listings aimed at companies operating within or connected to the crypto and blockchain industries.
The company currently manages $1.5 billion in assets across its diverse portfolio. Bitwise’s crypto ETF allows investors to gain exposure to public companies involved in the crypto and blockchain industries without holding crypto assets such as Bitcoin or Ethereum.
BITQ created the Bitwise Crypto Industry Innovators 30 Index to analyze and capture pure-play companies and organizations in the crypto and blockchain industries. This means that any company indexed as a participant in the crypto field should be actively engaged in the sector and have at least $100 million in liquid crypto assets on its balance sheet. At the end of each financial year, the index is rebalanced.
This new index aims to capture the cryptocurrency stock market, focusing on the opportunities it presents due to its sector-specific characteristics. The index has a fast-entry policy that allows new IPOs and direct listings to enter the index the day after launched, giving it a high level of liquidity.
The index has a fast-entry policy that allows new IPOs and direct listings to enter the index the day after launched, giving it a higher rate of adaptability to an accelerating market.
Bitwise created the BITQ fund in partnership with Moorgate Benchmarks, a London-based index analysis company, and Exchange Traded Concepts. This ETF platform provider serves as the fund’s investment advisor. Bitwise has also enlisted the support of SEI Investment Distribution Co to provide investment management and distribution services.
“Like e-commerce and mobile before it, crypto is a disruptive technology creating massive opportunities for new companies to emerge as winners. Until recently, most great crypto innovators were private companies, but that’s changing rapidly. Today, there’s a growing set of public companies capitalizing on crypto and more to come. BITQ aims to identify these businesses and give investors access,”,” shared Matt Hougan, Chief Information Officer at Bitwise. “
Companies in the new index must either generate at least 75 percent of their revenue directly from cryptocurrency markets or have at least 75 percent of their net assets audited as direct holdings of any crypto asset with confirmed liquidity, according to Bitwise. Companies that provide crypto brokerage services, financial and banking services, mining solutions, technology solutions, or analytics solutions are classified and considered based on these criteria.
“Over the past few years, many investors have had to watch from the sidelines as a select few have reaped the rewards of stellar cryptocurrency returns,”shared Hunter Horsley, CEO of Bitwise.
“We’ve heard time and again from clients that the primary challenge has been finding a way to access the incredibly complex and fast-moving crypto space. With BITQ, our aim is to make crypto investment opportunities available through traditional investing platforms and a familiar, liquid, and cost-effective ETF. We are thrilled to see this space continue to grow as investors increasingly gravitate toward this transformative asset class,”Horsley added.
Coinbase was one of the first companies to apply for inclusion in the index, having gone public on April 14th. BITQ currently tracks Coinbase with a 10% weighting. Bitwise presently manages some investment funds, including the first DeFi (decentralized finance) crypto index fund (which debuted in February this year) and the Bitwise 10 Crypto Index Fund (OTCQX:BITW), which debuted in December 2020 on OTC markets. The Securities and Exchange Commission of the United States has yet to sanction an ETF linked explicitly to Bitcoin or other crypto-based properties.