Bitwise funds exceed US500 million as institutions migrate to cryptomoedas

Input flows suggest that investors are seeking broad exposure to cryptomites, including Bitcoin and Ether.

The leading cryptomotic fund manager, Bitwise Asset Management, reached a milestone in the fourth quarter of 2020 as inbound flows into its products reached new records, underscoring the increased institutional demand for digital assets.

The company’s assets under management, or AUM, exceeded US$500 million, according to a press release on Monday. This is a considerable increase over the US$100 million in AUM held on 28 October 2020.

The press release says:

„Bitwise saw record inflows into its funds during the fourth quarter of 2020, surpassing the combined 2018 and 2019 cumulative inflows“.

Most of the new demand came from investment professionals such as financial advisors, hedge funds, corporations and other institutional investors.

The Bitwise 10 Crypto Index Fund, which offers broad exposure to the largest digital assets, is by far the most popular product, with more than $400 million in assets under management. The fund has Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and seven other crypto currencies.

Bitwise says the demand for its funds focused on Bitcoin and Ethereum also registered higher demand in the fourth quarter.

Hunter Horsley, co-founder and CEO of Bitwise, said „The speed with which professional investors are entering the cryptomoedas is now remarkable.

Before the new year, Bitwise announced it had liquidated its position at XRP in response to a lawsuit filed against Ripple Labs by the U.S. Securities and Exchange Commission. In addition to the XRP fiasco, the cryptomoeda market appears set to expand as more institutional investors enter the company.

David Lawant, a Bitwise research analyst, told Cointelegraph recently that there is less „career risk“ from entering the cryptomoedas, meaning more institutions are coming on board. Bitcoin’s growing appeal as a safe haven asset that can potentially offset so-called „high monetary inflation“ has become a key catalyst for adoption, he said.