Bitcoin Funds Make Progress in AUM, Benefits from Bitcoin YTD Rise

Posted on 02/28/2021

San Francisco-based Bitwise Asset Management, Inc., a crypto manager, runs the Bitwise 10 Crypto Index Fund, which accounts for over 90 percent of its total assets under management. The index was launched in 2017 and now oversees more than US$ 1 billion in cryptocurrency assets under management.

Grayscale Bitcoin Trust is a traditional investment vehicle with shares titled in the investors name. It is the world’s largest Bitcoin fund, at a recent value of US$ 31.6 billion. For some investors buying investment trusts can be easier than purchasing the Bitcoins themselves. This can sometimes be at a market premium to Bitcoin.

Purpose Investments Inc. launched the Purpose Bitcoin ETF, making it the first to gain regulatory approval in North America. The fund is designed to provide investors with exposure to the world’s largest cryptocurrency by investing directly in physically settled Bitcoin.

In addition, younger investors looking for a store of value are opting in some avenues toward Bitcoin and other digital currencies vs. gold. Can gold and Bitcoin peacefully coexist? How does Bitcoin do in a down market in equities?

Bitcoin has grown in popularity, partly from the policies derived by Western central banks and the growth of fiat currency. The unusually dovish Federal Reserve policy and rhetoric, massive consumer cash balances, adoption of crypto on some corporate balance sheets of tech companies, and a global economic recovery underway have been key drivers of digital currency growth.

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