Bitwise Crypto Index Could Bring In More Institutions

Grayscale is making a lot of noise with its crypto funds that allow for retirement accounts as well as other institutions to invest in Bitcoin, Ethereum, and Litecoin.

So far, the company has $12 billion in assets under management. This is a situation that Bitwise is looking to duplicate.

Both trade on the OTC markets. Like Grayscale, there is a premium for the fund over the cost of the underlying asset. Bitwise's crypto index opened at a 54% premium.

Grayscale initially scared investors off due to the premium. However, they quickly got over that when realizing that it could appreciate, providing a better return. Of course, the reverse is also true.

That said, Bitwise's premium might be a bit high, at least investors could be looking for a pullback.

Outside of this, we are moving closer towards having the resources to enable the bigger institutions to enter the market. While the Bitcoin (and crypto) world awaits approval on an ETF, these OTC funds will have to fill the void.

This is Bitwise's response after having their ETF application turned down last year.

Bitwise is also not offering different funds for each asset. They are combining all into one fund. Here is a list of its holding.

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The benefit to this fund is that it allows firms such as Fidelity, Schwab, and TD Ameritrade to buy the shares. Like Grayscale, it allows for investors with retirement accounts to access the fund.

Based upon the amount of Bitcoin that Grayscale buys each week, it won't take a lot to put even more pressure on the largest token. At present, Bitwise pulled in $100 million, a drop compared to what of the other purchases taking place.

Of course, this is likely only to be the beginning. Bitwise will pull in more money as other investment houses start to realize it is available. Even if it doesn't compare to Grayscale, a couple billion under management will alter the crypto landscape. Where this does differ is that it will extend passed Bitcoin and help the alt-coins some.

When crypto advocates mention about all this just being the beginning, it is moves like that that they are referring to. The money Wall Street has is beyond comprehension. Trillions of dollars are available to enter the crypto industry. It is only a matter of time.

There will come a time when there are dozens of these types of funds, all using cryptocurrency as the basis for their shares.

This will put incredible buying pressure on the underlying assets. The reason is Wall Street has too much money to miss out on this opportunity.


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Bang, I did it again... I just rehived your post!
Week 35 of my contest just started...you can now check the winners of the previous week!
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Wow look at all that money and how eventually the buying pressure it puts in... , Now imagine all those dozens funds all using cryptocurrency as the basis for their shares?
Like you said wall Street will eventually pump in that money, it only means more legibility and more relevance for crypto.

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What is interesting is that there are a number of projects that are focusing upon the smaller tokens. There is INDEX on Hive Engine which is buying up H-E tokens. There is also a project on SingularityNet that is going to focus upon some of the lower coins on Coingecko.

A lot of good stuff happening.

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I started buying some INDEX. :) If Hive Engine starts getting bigger that token will do some great things.

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Yeah and what is nice is they are loading up on some terrific tokens. They are buying LEO which I think has a huge future.

A nice fund to get into. We will see how they evolve.

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Smaller tokens would also need that massive money going forward, I don't really know about this until you just spoke about it now. Wow on H.E?

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54% premium!?

UHHHH... why? Wtf am I missing with this one? Holy cow.

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It is how those funds work. The premium on GBTC got over 30%.

Basically, you have the value of the BTC (or whatever crypto) based upon market price. However the price of the fund shares also freely trade. Thus, the price of BTC could drop at a greater rate than the price of the shares of the fund (or vice versa).

Usually, the premium spreads on the run up and plummets when Bitcoin drops.

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Trillions of dollars are available to enter the crypto industry.

Glad to hear about the increasing in investment on Crypto of Big investors!

It would be great if they could focus on LEO & HIVE and invest.

Thank for sharing.

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Outfits like that are not going to concentrate on Hive or Leo.

The market caps are way too small to even be of interest. There is a lack of liquidity that they will not contend with.

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Yes, just hoping!

We and Leo & Hive Blockchain must/ will try to get Big Market caps and a lot of Liquidities on many Exchanges.

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To me looks like both are good and doing great

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I think more ETFs coming into play will raise the price of cryptocurrencies. Since ETF is passive management, I expect prices to be kind of stable at a certain point.

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It also provides stability by having huge flows of money coming in. This grows the size of the entire asset class which, in turn, reduces volatility.

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The money flows, other party benefit from it.
I am wondering how the find will help to affect the crypto space positively

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My brother in law works for an accounting firm and the other day he had his cousin who is heavily into crytpocurrency give a presentation to some of the employees about BTC. From the way it sounds, it went really well. It seems that more and more firms are starting to soften their stance on crypto. Probably largely due to the things like you are mentioning above.

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And for every presentation like that which we know about there are many more not on our radar.

It is getting tough to ignore cryptocurrency and what is taking place. We are seeing the numbers start to work in our favor.

The thing about exponential growth is that it is happening all along. However, until there is enough of a numerical basis, there is very little noticeable impact.

I think we are nearing the point where enough was developed and put together that each new addition only adds to the significant level achieved.

Another year of progress like this and we will see amazed at how things are jumping then.

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Gotta love the snowball effect! Unless you are that village at the base of the mountain that refuses to face reality!

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(Edited)

This is amazing. But all of this is good when crypto is predictable. The unpredictability makes us think twice before investing in crypto.

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If retirement account invested in a crypto and at the time of retirement, that crypto just collapsed, then what will happen?

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Again some more great news from the market! You are 100% right, WallStreet can't miss this great opportunity and we need to act before them. Thanks for the hint as it slept under my view.

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