Bitwise Asset Management announced the introduction of their newest fund, the Bitwise Blue-Chip NFT Index Fund, which aims to provide investors with exposure to the most established and largest NFT art collections.
In the third quarter of this year, non-fungible tokens took the digital asset world by storm, with a trading volume of over $10 billion. NFTs generally align at the crossroads of art and the crypto realm, opening up a whole new investing path for would-be crypto investors.
The fund offers diverse exposure to some of the most well-known NFT collections currently accessible, as well as the convenience of not having to attend auctions or bid on specific works of art.
“In art, new frontiers are few and far between. In the press statement, Bitwise CIO Matt Hougan noted, “Completely new artistic media are even rarer.” “In our increasingly digital world, NFTs have arisen as the first digitally native medium for owning art and collectibles, with immense potential for meaning, value, and application.” For many investors, this combination indicates a potential profit opportunity. The Bitwise Blue-Chip NFT Index Fund aims to provide these investors with easy, diversified access to the most valuable collections in the digital art market.”
The Bitwise Blue-Chip NFT Collections Index, a market cap-weighted index that includes the ten largest NFT collections, is the benchmark for the fund. The methodology used by the index aims to optimise both price discovery and liquidity of the assets it tracks.
This Bitwise fund invests in and holds NFTs from the largest collections in custody, which collectively have a market cap of over $6 billion. Bored Ape Yacht Club, CryptoPunks, Autoglyphs, VeeFriends, Fidenza, and others are among the constituents.
“Since launching the world’s first crypto index fund in 2017, our goal has always been to provide investors with a sensible and convenient method to participate in crypto’s growth wherever that leads us,” Bitwise CEO Hunter Horsley said in a statement. “Recently, it’s become evident that any discussion of crypto’s potential must include NFTs, which are profoundly altering how we think about property rights in general, not just art ownership.” We wanted to give individuals who are as compelled by the space as we are the opportunity to invest in some of the NFT movement’s most defining collections as they evolve.”
The NFT fund is only available to authorised investors who have purchased a private placement subscription with a minimum investment of $25,000; following the first lock-up period, the fund will offer monthly redemptions. The Bitwise Blue-Chip NFT Index Fund has a 3.0 percent expense ratio.