Bitwise Crypto Industry Innovators ETF (NYSE BITQ) Launches
Bitwise Asset Management, one of the largest and fastest-growing crypto-specialist asset managers, with AUM over $1.5 billion,1 today announced the launch of the Bitwise Crypto Industry Innovators ETF (NYSE: BITQ). BITQ aims to provide investors with exposure to valuable public companies that are participants in the growing bitcoin and cryptocurrency sector.
The new ETF offers a way for investors to gain exposure to the crypto market without the challenges of directly holding crypto assets like bitcoin and ethereum.
BITQ seeks to track the Bitwise Crypto Industry Innovators 30 Index, designed with Bitwise’s industry expertise to capture “pure-play” companies engaged in actual, material activity in the crypto sector. Additionally, the index includes companies with at least $100 million of liquid crypto assets on their balance sheet.
In most cases, companies in the new index derive at least 75% of their revenue from directly servicing cryptocurrency markets or have at least 75% of their net assets accounted for by direct holdings of liquid cryptoassets. Such companies may, for example, offer crypto brokerage services, financial and banking services, mining solutions, technology solutions, or analytics solutions. The index rebalances quarterly.
“Like e-commerce and mobile before it, crypto is a disruptive technology creating massive opportunities for new companies to emerge as winners,” said Matt Hougan, CIO of Bitwise. “Until recently, most great crypto innovators were private companies, but that’s changing rapidly. Today, there’s a growing set of public companies capitalizing on crypto, and more to come. BITQ aims to identify these businesses and give investors access.”
The index is designed specifically to capture the unique characteristics of the crypto equity market. For example, the index has a “fast-entry” rule that allows new IPOs and direct listings to enter the index one day after their debut, allowing it to quickly adapt to the rapidly changing market. As an example of this rule’s impact, on April 14, 2021, one of the largest names in cryptocurrency, Coinbase, went public. On April 15, 2021, Coinbase qualified for inclusion in the index that BITQ tracks at a 10% weight.
“Over the past few years, many investors have had to watch from the sidelines as a select few have reaped the rewards of stellar cryptocurrency returns,” said Hunter Horsley, CEO of Bitwise. “We’ve heard time and again from clients that the primary challenge has been finding a way to access the incredibly complex and fast-moving crypto space. With BITQ, our aim is to make crypto investment opportunities available through traditional investing platforms and a familiar, liquid, and cost-effective ETF. We are thrilled to see this space continue to grow as investors increasingly gravitate toward this transformative asset class.”