Bitwise Asset Management Expands DeFi Suite With Launch of the World’s First Uniswap and Aave Funds

Rhea-AI Summary

Bitwise Asset Management has launched the Bitwise Uniswap (UNI) Fund and the Bitwise Aave (AAVE) Fund, expanding its suite of investment strategies in decentralized finance (DeFi). These funds aim to provide professional investors with greater access to leading DeFi protocols, Uniswap and Aave, which handle significant trading volumes and outstanding loans, respectively. With over $1 billion in assets under management, Bitwise continues its mission to simplify crypto investments. Anchorage Digital Bank serves as the custodian for the new funds, ensuring secure management of crypto assets.

Positive

• Launch of the Bitwise Uniswap Fund and Bitwise Aave Fund enhances DeFi investment options.
• Uniswap and Aave are the largest DeFi protocols, indicating strong market positioning.
• Bitwise's assets under management exceed $1 billion, reflecting investor confidence.
• Partnership with Anchorage Digital Bank enhances security and credibility.

Negative

• None.

Bitwise Asset Management, the world’s largest crypto index fund manager with over $1.0 billion in AUM,¹ today announced the launch of the Bitwise Uniswap (UNI) Fund and the Bitwise Aave (AAVE) Fund. These two new strategies join the Bitwise DeFi Crypto Index Fund in simplifying access to the emerging decentralized finance (DeFi) space for professional investors.

“There is growing demand from financial advisors, hedge funds, institutions, and other professional investors for exposure to the fast-growing DeFi markets,” said Matt Hougan, CIO of Bitwise. “Uniswap and Aave are the two largest DeFi protocols in our DeFi index, and are the largest decentralized exchange and decentralized lending protocol in the world, respectively. Bitwise’s vision is to make the opportunities emerging in crypto more accessible, and we’re thrilled to take another step with the world’s first Uniswap and Aave investment funds.”

The Bitwise Uniswap Fund will invest directly in UNI, the native token of the Uniswap protocol, the leading decentralized crypto exchange. Uniswap’s transparent, peer-to-peer trading system has proven to be a material alternative to conventional exchanges (such as Coinbase). In June 2021 alone, Uniswap handled more than $60 billion in trading volume, up 6,000% year over year.

The Bitwise Aave Fund will invest directly in AAVE, the native token of the Aave protocol, the leading decentralized and non-custodial lending and borrowing protocol. As a transparent, programmable, peer-to-peer alternative to conventional loan providers, Aave has seen remarkable adoption: Total outstanding loans on Aave’s platform grew from $93.7 million in July 2020 to $6.92 billion in July 2021, up over 70x year over year.²

Bitwise manages a growing suite of investment funds, including the world’s first and largest crypto index fund, the Bitwise 10 Crypto Index Fund (OTCQX: BITW), that aim to simplify access to the full range of opportunities in the crypto space. The UNI and AAVE funds will form part of a growing suite of DeFi-focused products, including the Bitwise DeFi Crypto Index Fund, which launched in February 2021 as the first DeFi index fund in a traditional fund format. The firm focuses on partnering with investment professionals, and today serves RIAs, financial advisors, multifamily offices, high net worth individuals, hedge funds, and other institutional investors.

The new funds’ custodian is Anchorage Digital Bank, N.A., which became the first federally chartered digital asset bank in U.S. history in January 2021, and today secures billions of dollars in cryptoassets.

¹ As of July 26, 2021.
² From July 26, 2020 to July 26, 2021. Data from Ethereum ETL and CoinGecko, available at TheBlockCrypto.com.

About Bitwise Asset Management

Based in San Francisco, Bitwise is one of the largest and fastest-growing cryptoasset managers. As of July 26, 2021, Bitwise managed over $1 billion across an expanding suite of investment solutions. The firm is known for managing the world’s largest crypto index fund (OTCQX: BITW) and pioneering products spanning bitcoin, ethereum, DeFi and crypto-focused equity indexes. Bitwise focuses on partnering with financial advisors and investment professionals to provide quality education and research. The team at Bitwise combines expertise in technology with decades of experience in traditional asset management and indexing, coming from firms including BlackRock, Blackstone, Facebook and Google, as well as the U.S. Attorney’s Office. Bitwise is backed by leading institutional investors and asset management executives, and has been profiled in Institutional Investor, CNBC, Barron’s, Bloomberg and The Wall Street Journal.

RISK DISCLOSURE AND IMPORTANT INFORMATION

Carefully consider the investment objectives, risk factors, and charges and expenses of any Bitwise investment product before investing. Investing involves risk, including the possible loss of principal. There is no guarantee or assurance that the methodology used by Bitwise or any of the Bitwise investment products will result in any Bitwise investment product achieving positive investment returns or outperforming other investment products. There is no guarantee or assurance that an investor’s investment objectives will be met through an investment into any Bitwise investment product, and an investor may lose money. Investors in any Bitwise investment product should be willing to accept a high degree of volatility in the price and the possibility of significant losses including the complete loss of the investment. Bitwise investment products involve a substantial degree of risk and are available only to institutional and individual accredited investors.

Certain of the Bitwise investment products may be subject to the risks associated with investing in cryptoassets, including cryptocurrencies and crypto tokens. Because cryptoassets are a new technological innovation with a limited history, they are a highly speculative asset. Future regulatory actions or policies may limit the ability to sell, exchange or use a cryptoasset. The price of a cryptoasset may be impacted by the transactions of a small number of holders of such cryptoasset. Cryptoassets may decline in popularity, acceptance or use, which may impact their price. The technology relating to cryptoassets and blockchain is new and developing. Currently, there are a limited number of publicly listed or quoted companies for which cryptoassets and blockchain technology represent an attributable and significant revenue stream.

The opinions expressed herein are intended to provide insight or education and are not intended as individual investment advice. Bitwise does not represent that this information is accurate and complete and it should not be relied upon as such.

This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any security in particular. Past performance is no guarantee of future results.

Diversification may not protect against market risk. Diversification does not ensure a profit or protect against a loss in a declining market.

Bitwise may attempt to have shares of its investment products quoted on a secondary market. However, there is no guarantee this will be successful. Although the shares of certain Bitwise investment products have been approved for trading on a secondary market, investors in any other Bitwise investment product should not assume that the shares will ever obtain such an approval due to a variety of factors, including questions that regulators such as the SEC, FINRA or other regulatory bodies may have regarding the investment product. As a result, shareholders of such investment product should be prepared to bear the risk of investment in the shares indefinitely.

This press release is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. The offer and sale of these investment products have not been registered with or approved or disapproved of by the Securities and Exchange Commission or the securities commission or regulatory authority of any state or foreign jurisdiction.

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FAQ

What are the newly launched funds by Bitwise Asset Management?

Bitwise Asset Management has launched the Bitwise Uniswap (UNI) Fund and the Bitwise Aave (AAVE) Fund.

What is the purpose of the Bitwise Uniswap and Aave Funds?

These funds aim to provide professional investors with simplified access to leading decentralized finance protocols.

How much capital does Bitwise Asset Management manage?

As of July 26, 2021, Bitwise Asset Management manages over $1 billion in assets.

Who serves as the custodian for the new Bitwise funds?

The custodian for the new Bitwise funds is Anchorage Digital Bank.

What are the trading volumes for Uniswap and Aave?

In June 2021, Uniswap handled over $60 billion in trading volume, while Aave's outstanding loans grew to $6.92 billion from $93.7 million in July 2020.