FreeCryptoCurrency.Me

Cryptocurrency asset manager Bitwise has listed the shares of its index fund on over-the-counter (OTC) markets, making them tradeable via traditional brokerage accounts.

Until now, the Bitwise 10 Crypto Index Fund was available to buy via private placements, at net asset value. Now the fund’s listing on OTCQX, a market offered by OTC Markets Group, will make its shares publicly traded.

Bitwise appears to be late to the party. Rival Grayscale’s funds have since long been available on OTC markets. When asked why so, Matthew Hougan, global head of research at Bitwise, told The Block that the firm’s primary clients are “just now starting to allocate to crypto in a major way.”

Bitwise mainly serves financial advisors and investment professionals. Hougan said these clients found the private placement method complicated, involving accreditation, signatures, and wires.

“It was making things incredibly difficult, especially those who wanted to allocate 2% across 100 clients,” said Hougan. “We listened to clients…We then spent a year working with regulators to make it happen.”

The index fund’s shares will be listed under the ticker symbol “BITW,” and it will be available for investors through traditional brokerage accounts such as Fidelity, Charles Schwab, E*Trade and TD Ameritrade.

As BITW is an index fund that tracks the Bitwise 10 Large Cap Crypto Index, it will give investors exposure to the ten largest cryptoassets. As of November 30, the fund held approximately 75% bitcoin and 13% ether, with the remaining 12% allocated across XRP, litecoin, chainlink, tezos, and other cryptocurrencies.

“Index funds have become the dominant way that investors gain exposure to the stock market, and we think that will happen in crypto too,” Hougan told The Block.

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.