Final month San Francisco-based Bitwise Investments announced a passively managed index fund comprised of the highest 10 cryptocurrencies by market capitalization. The fund rebalances as soon as a month, and all property are held in chilly storage. Primarily its a straightforward manner for traders to achieve some passive publicity to cryptocurrency with out having to fret about which of them to decide on and the best way to purchase and retailer them.
At this time the startup introduced they’re elevating $4M in seed funding to construct out the crew and work on growing new funding merchandise. Buyers embody Khosla Ventures, Normal Catalyst, Naval Ravikant, Elad Gil and others. Bitwise can be accepting traders as of at present, with baskets being created each two weeks going ahead.
The startup plans to make use of the funding to rent 10 new staff – 5 on the engineering facet and 5 on traders relations and enterprise growth. Whereas 5 engineers looks as if loads for a small passively managed fund, Bitwise desires to construct out a software program platform so it may well stand out from different conventional asset administration companies. This implies the startup will present merchandise like a real-time dashboard for traders (versus a month-to-month emailed PDF) but in addition concentrate on difficult engineering points like optimizing chilly storage procedures.
Proper now traders need to be U.S-based and accredited because it’s a non-public funding automobile and never an ETF. The minimal funding is $10,000 – which is mostly a lot lower than a crypto-focused hedge fund would require. Going ahead they’re planning on launching a Cayman Island automobile so worldwide traders can take part.
You may learn extra about Bitwise Investments and their first fund in our original launch post here.