More and more players on wall street accept bitcoin as a new tool which can potentially provide amazing growth opportunities, and traditional investors are taking advantage of these benefits. For example, an index Fund managed by a Bitwise, accounted for 45% of the profits in the first two months.
Cryptocurrencies provide the performance
Bitwise Asset Management, managing private cryptocurrency index Fund HOLD 10, has published an interesting statistics that show the effectiveness of the Fund since its launch last autumn. For the first two full months HOLD 10 offered investors 45% of the profit. At the December bull market of the bitcoin grew by 39% compared with 78% HOLD 10, and at the January bear market BTC fell by 27% compared to 18% of the Fund.
CEO hunter HORSLEY (Horsley Hunter) said:
“Since launch the Fund has adopted hundreds of investors from doctors, professors and engineers to investment firms and billionaires. Because of the rules on private funds with this tool we now can serve only accredited investors (like many of the ICO, such as Blockstack and Filecoin). But our goal is to be able to serve all“.
To be an accredited investor in the United States, a person must have assets with a net worth of at least $1 000 000, excluding the value of their primary residence.
Index HOLD 10 has a very low correlation with traditional asset classes, which is especially important for investors diversificarea portfolio (test on historical data for 12 months showed: 10.8% correlation with the S&p 500, -5.9% to the aggregate bond index Barclays U.S. Bloomberg and -1.6% with gold). After the rebalancing on 1 February, the Fund contains: BTC, ETH, BCH, XRP, DASH, LTC, XMR, EOS, XLM and NEO.
From ETF to the cryptocurrency
Yesterday, representatives of the Bitwise took to the team of the person that wrote a book on ETFs — Matt Ohana (Matt Hougan). This illustrates that the cryptocurrency is becoming another major class of financial assets. In an index Fund, he became Vice President of research and development; previously he was the Director General Inside the ETF, and before that CEO ETF.com.
Spencer Bogart (Bogart Spencer), partner of Blockchain Capital, which is an investor in Bitwise, commented: “Cryptocurrencies become mainstream. Matt’s experience in the field of indices, exchange-traded products and institutional research complements the team’s experience in the field of software and will help to ensure that Bitwise will remain best-in-class partner for investors“.