Bitwise Has Reportedly Surpassed $100 million in Assets Under Management (AUM)

Bitwise Asset Management, a cryptocurrency investment firm based in San Francisco announced recently that it has now more than $100 million in assets under management (AUM). Bitwise was able to achieve this milestone because of the rising demand for cryptocurrency from professional investors.

The majority of inflow was witnessed by the Bitwise 10 Crypto Index Fund which is a major crypto-asset index fund and tracks the top ten digital assets of the world by market cap such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). Professional investors have been pouring their investments into the top-ranked digital currency as well as into the cryptocurrency sector as a whole which ultimately increased demand for crypto.

The Chief Executive Officer (CEO) of Bitwise said that only individual investors were out there mostly in the cryptocurrency space when Bitwise began operating in the year 2017. Now we see various entities developing their interest in the space such as hedge funds, financial advisors, RIAs, and offices, etc. Moreover, major industry players have also entered into Bitcoin and Cryptocurrency including MicroStrategy, PayPal, Facebook, Square, Chicago Mercantile Exchange (CME), Fidelity, and Nomura. He said that their entrance “has convinced many who were previously cautious that it’s time to reevaluate”.

It has been revealed by the “Bitwise/ETF Trends Release 2020 Benchmark Survey Of Financial Advisor Attitudes Toward Cryptoassets” that we may see an increase from six percent to thirteen percent in the number of financial advisors who are planning on allocating to the digital currency space.

It was an innovative decision made by the online payment giant PayPal to step into the world’s largest digital currency Bitcoin, said the Chief Investment Officer (CIO) of Bitwise Matt Hougan.

“The challenges that historically kept professional investors on the sidelines—including regulatory concerns, custody, reputation, and understanding—are rapidly being swept aside. Meanwhile, the potential impact crypto can have on portfolios from a risk-adjusted basis, amid the current macro backdrop, is making it hard to ignore,” he added.

If the demand for digital currency increases further with the passage of time, the total number of assets under management by Bitwise may also increase.

Author: MubaShar Nawaz
MubaShar Nawaz is an experienced writer working for TheForexPro.info. Having passion for writing, he covers news articles from the finance and trading world.

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