Digital asset management company Bitwise Asset Management has listed its index Fund on over-the-counter markets in the US, making them available for trading through traditional brokerage accounts.
Until then, the Bitwise 10 Crypto index Fund (BITW) was only available through a closed-end offering at the net value of the assets being acquired. Listing the Fund on the OTC Markets Group platform will allow its shares to be publicly traded. This was preceded by an assessment by the financial services regulatory Authority (FINRA).
Rival Grayscale Investments has long offered shares of its trusts on the OTC market. Matthew Hogan, head of research at Bitwise, explained that they didn't use OTC platforms before, as their main clients are "just now starting to invest big."
At the end of October, the amount of assets under Bitwise management was more than $100 million. The firm attributes the growth to the interest of hedge funds, financial advisors, and asset managers.
The Bitwise 10 Crypto Fund is linked to a basket of the 10 largest cryptocurrencies weighted by capitalization. As of the end of November, 75% of its basket was represented by bitcoin, 13% - Ethereum.
"BITW is focused on financial advisors. Financial advisors need a safe and simple method of investing clients 'assets in cryptocurrencies," Hogan added.
Bitwise previously unsuccessfully sought permission to list a bitcoin-based exchange-traded Fund (ETF) with the U.S. securities and exchange Commission (SEC). Unlike an ETF, an OTC Fund does not require registration with the SEC. Despite today's listing, Bitwise is not going to abandon plans to launch a bitcoin ETF.