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.



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