Bitwise Launches A Blue-Chip NFT Index Fund

Bitwise Launches A Blue-Chip NFT Index Fund
Reda Farran, CFA

about 2 years ago1 min

The Bitwise Blue-Chip NFT Index Fund, which launched earlier this month, holds NFTs from CryptoPunks, Bored Ape Yacht Club, Mutant Ape Yacht Club, Autoglyphs, Fidenza, VeeFriends, CyberKongz Genesis, Cool Cats, Meebits, and Chromie Squiggle. These represent the top 10 NFT collections based on market capitalization, and you can see the fund’s weight in each collection in the graph above.

Bitwise said the fund will focus its holdings solely on art and collectibles, meaning NFTs like music rights, virtual land, and game items won't be included. It will also exclude NFTs from collections with fewer than 100 items since Bitwise views those assets as too illiquid – that is, they are not easily traded.

But speaking of not being easily traded, the Bitwise Blue-Chip NFT Index Fund is only available to accredited investors with a $25,000 minimum investment. Also, note that the fund is not an ETF that you can buy and sell daily. You can only buy into the fund once a week, and the whole process takes two to five days the first time you do it. Redemptions to exit the fund are only offered on a monthly basis and can only be done after a six-month initial lockup period.

Lastly, with an expense ratio of 3%, the fund is certainly not cheap. But it might be worth it for some investors who want a simple, secure, and less time-consuming way to gain diversified exposure to the booming digital art market.

Finimize

BECOME A SMARTER INVESTOR

All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

Finimize
© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG