The first crypto industry ETF in the U.S., BITQ provides equity exposure to the bitcoin and digital asset sector through leading “pure-play” crypto companies.
Bitwise Asset Management, one of the world’s leading crypto asset managers, announced today that the Bitwise Crypto Industry Innovators ETF (NYSE: BITQ) recently surpassed $100 million in assets under management. The milestone comes amid what many consider a turning point for the crypto sector, which has seen positive industry developments, strong market performance, and growing investor interest throughout 2023. As of June 30, bitcoin had risen more than 83% year-to-date,1 while BITQ was up more than 135% over the same period.2
Since the fund’s inception in 2021, investors have utilized BITQ for its potential impact on portfolio diversification and as a way to access an emerging growth sector through a traditional equity ETF vehicle.
“We’re proud that investment professionals continue to trust BITQ to get exposure to the bitcoin and digital asset economy through a carefully designed, traditional equity ETF,” said Mick McLaughlin, Chief Distribution Officer at Bitwise Asset Management. “We’re grateful to our clients for this milestone and for the privilege of being their partner.”
The first crypto industry ETF, BITQ seeks to track an index designed by Bitwise that consists of leading companies driving the fast-growing crypto economy. At each rebalancing, at least 85% of BITQ’s holdings are “pure-play” firms, which derive more than three-quarters of their revenue from crypto-related businesses, while up to 15% of holdings are reserved for more diversified companies making meaningful investments in the space.
Founded in 2017, Bitwise manages a broad suite of 18 professional investment solutions, including ETFs, publicly traded trusts, SMA strategies, multi-strategy solutions, and private funds. The firm is known for its nationwide distribution team of crypto specialists, five-year track record, and industry-leading research, including its quarterly reports, white papers, and weekly CIO memo. Today, over 1,800 wealth teams, RIAs, family offices, and institutional investors leverage Bitwise to understand and access crypto markets strategically.
Bitwise developed the Bitwise Crypto Innovators 30 Index on which BITQ is based with input from Morningstar-owned Moorgate Benchmarks, a London-based index calculation and benchmark administration firm known for its expertise in the index space. Exchange Traded Concepts, an ETF platform provider, serves as the investment adviser to the BITQ fund, and SEI Investments Distribution Co., a provider of technology and investment solutions for the financial services industry, is the fund’s distributor.
About Bitwise Asset Management
Based in San Francisco, Bitwise is one of the largest and fastest-growing crypto asset managers, offering both index and active strategies across a wide array of investment vehicles. The firm is known for creating the world’s largest crypto index fund (OTCQX: BITW), a suite of crypto-focused equity and futures ETFs, and investment products that span Bitcoin, Ethereum, DeFi, NFTs, and the Metaverse. Bitwise focuses on partnering with financial advisors and investment professionals to provide quality education and research. The team at Bitwise combines expertise in technology with decades of experience in traditional asset management and indexing, coming from firms including BlackRock, Blackstone, Meta, and Google, as well as the U.S. Attorney’s Office. Bitwise is backed by leading institutional investors and asset management executives, and has been profiled in Institutional Investor, CNBC, Barron’s, Bloomberg, and The Wall Street Journal.
RISK DISCLOSURE AND IMPORTANT INFORMATION
Carefully consider the fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund’s full or summary prospectus, which may be obtained by visiting www.BITQETF.com. Investors should read it carefully before investing.
Investing involves risk, including the possible loss of principal. There is no guarantee or assurance that the methodology used to create the Index will result in the Fund achieving positive investment returns or outperforming other investment products. Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index.
The Fund is non-diversified and will not invest in crypto assets directly or through the use of derivatives and also will not invest in initial coin offerings. The Fund may, however, have indirect exposure to crypto assets by virtue of its investments in Crypto Industry Innovators that use one or more crypto assets as part of their business activities or that hold crypto assets as proprietary investments. Diversification does not ensure a profit or guarantee against a loss.
In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Narrowly focused investments and investments in small companies typically exhibit higher volatility.
Investors in the Fund should be willing to accept a high degree of volatility in the price of the Fund’s shares and the possibility of significant losses. An investment in the fund involves a substantial degree of risk.
Certain of the Fund’s investments may be subject to the risks associated with investing in crypto assets, including cryptocurrencies and crypto tokens. Because crypto assets are a new technological innovation with a limited history, they are highly speculative asset. Future regulatory actions or policies may limit actions that can be taken with regard to crypto assets. The price of a crypto asset may be impacted by the transactions of a small number of holders of such crypto asset. Crypto assets may decline in popularity, acceptance or use, which may impact their price.
The technology relating to crypto assets and blockchain is new and developing. Currently, there are a limited number of publicly listed or quoted companies for which crypto asset and blockchain technology represents an attributable and significant revenue stream.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Exchange Traded Concepts, LLC serves as the investment advisor of the fund. The Fund is distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.
1 Source: Bitwise Asset Management
2 As of June 30, BITQ’s three-month return was 37.50%, its one-year return was 44.68%, and its annualized return since inception was -40.08%. The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling 1-833-365-BITQ (2487). Please see additional important disclosures below.
Frank Taylor / Ryan Dicovitsky, Dukas Linden Public Relations, Bitwise@DLPR.com