Bitwise Asset Management, the largest crypto index fund manager in America, announced today that the Bitwise Bitcoin ETF (BITB), the firm’s first spot bitcoin ETF, intends to begin trading on January 11. With the much-anticipated launch, BITB will join Bitwise’s comprehensive suite of 18 crypto investment products, which currently includes five other crypto ETFs.
The Bitwise Bitcoin ETF will trade on NYSE Arca under the ticker BITB. The management fee will be the lowest among approved spot bitcoin ETFs at 0.20%,1 with the fee set to 0% for the first six months on the first $1 billion in assets. The fund will hold bitcoin directly with the world’s largest regulated digital asset custodian, Coinbase Custody Trust Company, LLC. BITB’s auditor is KPMG, the administrator is Bank of New York Mellon, and the sponsor is Bitwise Investment Advisers, LLC.
ANTICIPATED DEMAND
“We expect significant demand for bitcoin ETFs like BITB,” said Bitwise CEO Hunter Horsley. “Every year for the past six years, financial advisors have identified ETFs as their preferred way to help clients access bitcoin. Last year, 64% of financial advisors preferred a spot bitcoin ETF over existing vehicles.2 Across our existing client base of thousands of investment professionals, we hear the same thing. Now, at long last, a spot bitcoin ETF is arriving.”
WATERSHED MOMENT FOR BITCOIN
The fund’s launch marks a critical turning point for the industry, said Bitwise CIO Matt Hougan.
“It’s hard to fully capture how big today is for bitcoin,” said Hougan, “but ‘game-changer,’ ‘sea change,’ or ‘turning point’ get closest. For more than a decade, investors who wanted to access the world’s largest crypto asset had to wrestle with how to own it. For many mainstream investors, that hurdle is now gone. We’re excited to see bitcoin take its seat at the table alongside other formerly fringe, now mainstream assets like private equity, private credit, and even gold.”
SUPPORTING OPEN-SOURCE DEVELOPERS
In conjunction with the launch, Bitwise announced that the firm will donate 10% of BITB’s profits to three non-profit organizations that fund Bitcoin open-source development: Brink, OpenSats, and the Human Rights Foundation’s Bitcoin Development Fund. These organizations fund open-source developers who play a critical role in improving the security, scalability, and usability of the Bitcoin network. The donations will be made annually for at least the next 10 years to further support the health and advancement of the Bitcoin ecosystem.
“Bitcoin is fundamentally open-source software,” said Bitwise Chief Technology Officer Hong Kim. “Both Bitwise and our clients have a vested interest in its ongoing development, and supporting these organizations is a direct way to contribute to that.”
A LEADING CRYPTO SPECIALIST
Founded in 2017, Bitwise is currently a partner to more than 1,800 advisor teams, RIAs, family offices, and institutions. This number has doubled in the last two years.
As a leading crypto specialist, Bitwise is known for its six-year track record, broad suite of crypto investment solutions, and leading research insights, including its quarterly reports, white papers, and Expert Portal for investment professionals, which features the Bitwise Bitcoin Library and the firm’s Weekly CIO Memo. Since its founding, Bitwise has maintained a deep commitment to client relationships, with a nationwide team of client-facing crypto experts.
ADDING DEPTH TO A COMPREHENSIVE SUITE
At BITB’s launch, Bitwise’s lineup of 19 products includes five additional ETFs:
Bitwise Crypto Industry Innovators ETF (ticker: BITQ)
Bitwise Bitcoin Strategy Optimum Roll ETF (ticker: BITC)
Bitwise Bitcoin and Ether Equal Weight Strategy ETF (ticker: BTOP)
Bitwise Ethereum Strategy ETF (ticker: AETH)
Bitwise Web3 ETF (ticker: BWEB).
Bitwise’s other product offerings include the Bitwise 10 Crypto Index Fund (ticker: BITW), private funds, multi-strategy solutions, and separately managed account (SMA) strategies. More information can be found at www.bitwiseinvestments.com.
For more information on BITB, and to read the fund’s prospectus, visit BITBetf.com/welcome.
About Bitwise Asset Management
Bitwise Asset Management is the largest crypto index fund manager in America. Thousands of financial advisors, family offices, and institutional investors partner with Bitwise to understand and access the opportunities in crypto. For six years, Bitwise has established a track record of excellence managing a broad suite of index and active solutions across ETFs, separately managed accounts, private funds, and hedge fund strategies. Bitwise is known for providing unparalleled client support through expert research and commentary, its nationwide client team of crypto specialists, and its deep access to the crypto ecosystem. The Bitwise team of more than 60 professionals combines expertise in technology and asset management with backgrounds including BlackRock, Millennium, ETF.com, Meta, Google, and the U.S. Attorney’s Office. Bitwise is backed by leading institutional investors and has been profiled in Institutional Investor, Barron’s, Bloomberg, and The Wall Street Journal. It has offices in San Francisco and New York. For more information, visit www.bitwiseinvestments.com.
Risks and Important Information
This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit BITBetf.com/welcome.
The Bitwise Bitcoin ETF (BITB) (the “Fund”) is not an investment company registered under the Investment Company Act of 1940 (the “1940 Act”) and is not subject to regulation under the Commodity Exchange Act of 1936 (the “CEA”). As a result, shareholders of BITB do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act or the protections afforded by the CEA.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The NAV may not always correspond to the market price of bitcoin and, as a result, Creation Units may be created or redeemed at a value that is different from the market price of the Shares. Authorized Participants’ buying and selling activity associated with the creation and redemption of Creation Units may adversely affect an investment in the Shares.
The amount of bitcoin represented by a Share will continue to be reduced during the life of the Fund due to the transfer of the Fund’s bitcoin to pay for the Sponsor’s management fee, and to pay for litigation expenses or other extraordinary expenses. This dynamic will occur irrespective of whether the trading price of the Shares rises or falls in response to changes in the price of bitcoin.
There is no guarantee or assurance that the Fund’s methodology will result in the Fund achieving positive investment returns or outperforming other investment products.
Investors may choose to use the Fund as a means of investing indirectly in bitcoin. Because the value of the Shares is correlated with the value of the bitcoin held by the Fund, it is important to understand the investment attributes of, and the market for, bitcoin.
Bitcoin Risk. There are significant risks and hazards inherent in the bitcoin market that may cause the price of bitcoin to fluctuate widely. The Fund’s bitcoin may be subject to loss, damage, theft or restriction on access. Investors considering a purchase of Shares should carefully consider how much of their total assets should be exposed to the bitcoin market, and should fully understand, be willing to assume, and have the financial resources necessary to withstand, the risks involved in the Fund’s investment strategy.
Liquidity Risk. The market for bitcoin is still developing and may be subject to periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the desired price. Possible illiquid markets may exacerbate losses or increase the variability between the Fund’s NAV and its market price. The lack of active trading markets for the Shares may result in losses on investors’ investments at the time of disposition of Shares.
Regulatory Risk. Future and current regulations by a U.S. or foreign government or quasi-governmental agency could have an adverse effect on an investment in the Fund.
Blockchain Technology Risk. Certain of the Fund’s investments may be subject to the risks associated with investing in blockchain technology. The risks associated with blockchain technology may not fully emerge until the technology is widely used. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Because blockchain technology systems may operate across many national boundaries and regulatory jurisdictions, it is possible that blockchain technology may be subject to widespread and inconsistent regulation.
Nondiversification Risk. The Fund is nondiversified and may hold a smaller number of portfolio securities than many other products. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers.
Recency Risk. The Fund is recently organized, giving prospective investors a limited track record on which to base their investment decision. If the Fund is not profitable, the Fund may terminate and liquidate at a time that is disadvantageous to Shareholders.
Bitwise Investment Advisers, LLC serves as the sponsor of the Fund. Foreside Fund Services, LLC serves as the Marketing Agent for BITB, and is not affiliated with Bitwise Investment Advisers, LLC, Bitwise, or any of its affiliates.
Carefully consider the investment objectives, risk factors, charges, and expenses of the Bitwise Crypto Industry Innovators ETF (BITQ) before investing. This and additional information can be found in the Fund’s full or summary prospectus, which may be obtained by visiting bitqetf.com/materials. Investors should read it carefully before investing. Exchange Traded Concepts, LLC serves as the investment advisor of the Fund. The Fund is distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Exchange Traded Concepts, LLC, Bitwise, or any of its affiliates.
Carefully consider the investment objectives, risk factors, charges, and expenses of the Bitwise Bitcoin Strategy Optimum Roll ETF (BITC), the Bitwise Web3 ETF (BWEB), the Bitwise Ethereum Strategy ETF (AETH), and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP) before investing. This and additional information can be found in each Fund’s full or summary prospectus, which may be obtained by visiting: for BITC, bitcetf.com/materials; for BWEB, bwebetf.com/materials; for AETH, aethetf.com/materials; for BTOP, btopetf.com/materials. Investors should read this information carefully before investing. Investing in securities involves risk and there is no guarantee of principal. The BITC, BWEB, AETH, and BTOP ETFs are distributed by Foreside Fund Services, LLC, which is not affiliated with Bitwise or any of its affiliates.
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1 Based on SEC filings as of January 9, 2024.
2 “The Bitwise/VettaFi 2024 Benchmark Survey of Financial Advisor Attitudes Toward Crypto Assets,” published in January 2024, is available at https://bitwiseinvestments.com/crypto-market-insights/the-bitwise-vettafi-2024-benchmark-survey.
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