LPL Financial Approves Bitwise 10 Crypto Index Fund on Its Platform

Rhea-AI Summary

Bitwise Asset Management has received approval for the Bitwise 10 Crypto Index Fund (OTCQX: BITW) to trade on LPL Financial’s platforms, effective June 28, 2021. This fund offers advisors diversified exposure to the top 10 cryptoassets, including Bitcoin and Ethereum, while being regularly rebalanced to reflect market changes. Bitwise, which manages over $1.2 billion in assets, aims to simplify crypto investments for advisors, providing tools and research to support their clients' portfolios.

Positive

• Approval of BITW for trading on LPL Financial's platforms increases accessibility for advisors.
• Ability to provide diversified exposure to top cryptoassets through one fund.
• Bitwise manages over $1.2 billion, indicating strong investor confidence.

Negative

• Investment in BITW involves high volatility and the risk of significant losses.
• Lack of a guarantees for achieving positive returns or meeting investment objectives.

Bitwise Asset Management, the largest cryptocurrency index fund manager, announced today that the Bitwise 10 Crypto Index Fund (OTCQX: BITW) has been approved for both solicited and unsolicited trades on LPL Financial’s brokerage and advisory platforms. The fund was made available to LPL’s affiliated advisors on June 28, 2021.

The Bitwise 10 Crypto Index Fund offers advisors a way to access diversified exposure to the cryptocurrency asset class for their clients. The fund seeks to track a market-capitalization-weighted index of the 10 largest cryptoassets, including bitcoin, ethereum, ethereum competitors, and DeFi assets. All assets are screened for important risk factors before being made eligible for inclusion in the index. The index is rebalanced monthly to stay up to date with the market.

The fund is managed by Bitwise Asset Management, a specialist cryptoasset manager founded in 2017 with over $1.2B in AUM.¹

“The Bitwise 10 Crypto Index Fund makes it easier for advisors to allocate to the cryptocurrency market as a whole without having to pick specific tokens or constantly monitor the rapid changes taking place in the industry,” said Mick McLaughlin, Managing Director and Head of Distribution at Bitwise Asset Management. “Our nationwide distribution team stands ready to help advisors navigate this space and, where appropriate, evaluate if and how to incorporate crypto into client portfolios.”

“We built Bitwise specifically to serve financial advisors, with products, education, and boots-on-the-ground distribution support,” added Hunter Horsley, Bitwise’s CEO. “We serve hundreds of RIA firms across the country today, and are thrilled that BITW is now available to LPL’s 17,000+ affiliated financial advisors. We admire LPL’s forward-thinking mindset toward the space.”

Bitwise’s research team provides in-depth and ongoing analysis of the crypto market that is designed to help advisors understand, evaluate and, where appropriate, allocate to the rapidly emerging space. In January, Bitwise CIO Matt Hougan and Director of Research David Lawant authored the CFA Research Institute’s first Research Brief on crypto, titled “Cryptoassets: The Guide to Bitcoin, Blockchain, and Cryptocurrency for Investment Professionals.”

More than 250 financial advisory firms use Bitwise’s research, educational tools, investment products and support services to steward investments on behalf of clients. To learn more about the Bitwise 10 Crypto Index Fund and Bitwise, please visit www.bitwiseinvestments.com or reach out to your local distribution team representative.

About Bitwise Asset Management

Based in San Francisco, Bitwise is one of the largest and fastest-growing cryptoasset managers. As of Q1 2021, Bitwise managed over $1.2 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

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 into any Bitwise investment product should be willing to accept a high degree of volatility in the price of such investment product and the possibility of significant losses. An investment in any Bitwise investment product involves a substantial degree of risk.

For certain Bitwise investment products, Bitwise is the index provider. There is no guarantee or assurance that the methodology used to create the index will result in funds that track that index achieving positive investment returns or outperforming other investment products. Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index.

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 decrease their price.

Certain of the Bitwise investment products are available to institutional and individual accredited investors through periodic and ongoing private placements. Because there is currently no redemption program for certain products traded on a secondary market there can be no assurance that the value of such product’s shares will reflect the value of the assets held by such product, less expenses and other liabilities, and the shares of such product may trade at a substantial premium over, or a substantial discount to, the value of the assets held, less expenses and other liabilities.

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

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

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¹ As of March 31, 2021.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210715005100/en/

FAQ

What is the Bitwise 10 Crypto Index Fund (BITW)?

The Bitwise 10 Crypto Index Fund (OTCQX: BITW) is an investment fund that provides diversified exposure to the top 10 cryptocurrencies.

When was BITW approved for trading on LPL Financial?

BITW was approved for trading on LPL Financial’s platforms on June 28, 2021.

What are the risks associated with investing in BITW?

Investing in BITW involves high volatility and significant risk, including the potential loss of principal.

How does Bitwise manage the cryptocurrency investments in BITW?

Bitwise's fund is managed based on a market-capitalization-weighted index of the 10 largest cryptoassets, rebalanced monthly.