Introduction

The Bitwise 10 Cryptocurrency Fund, introduced in November 2017, monitors the Bitwise 10 Large Cap Cryptocurrency Index, which includes the top 10 cryptocurrencies available for investment. These 10 cryptocurrencies make up about 70% of the entire cryptocurrency market.

BITW primarily consists of Bitcoin as it holds roughly 68% of the total portfolio, followed by Ethereum with 22%, and XRP at a distant 2.9%. Other coins include Solana (2.3%), Cardano (1.2%), Chainlink (0.8%), Avalanche (0.7%), Polygon (0.7%), Polkadot (0.6%), and Litecoin (0.5%).

The fund was officially introduced to the public in December 2020 and began trading with $120 million in assets. Despite the market's fluctuations, BITW has been able to increase its assets under management.

Bitwise Asset Management, the company behind the fund, explained the workings of the BITW in comparison to a mutual fund or ETF. It is an open-ended, publicly traded statutory trust that allows accredited investors to purchase shares at net asset value through private placement.

Although private placement for this cryptocurrency fund is no longer available, the restrictions for accredited investors and minimum holding periods have been lifted since it now trades over the counter.

While the 2.5% expense ratio may seem high, Bitwise clarifies that it includes management fees, custody charges, and other expenses related to fund administration.