Bitwise Funds Trust (AETH)

ETF Bitwise Funds Trust Overview:

Profile:

Bitwise Funds Trust is a US ETF that primarily focuses on the digital asset sector. Its main investment strategy is to track the Bitwise 10 Crypto Index, which includes the top ten liquid crypto assets. The ETF invests in physically backed cryptocurrencies with the goal of providing investors with a diversified exposure to this emerging asset class.

Objective:

The primary investment goal of Bitwise Funds Trust is to achieve long-term capital appreciation by tracking the performance of the Bitwise 10 Crypto Index.

Issuer:

The issuer of Bitwise Funds Trust is Bitwise Asset Management.

• Reputation and Reliability: Bitwise Asset Management is a leading provider of cryptocurrency-related financial products. The company is known for its strong track record in index creation and research within the digital asset ecosystem.
• Management: The management team consists of experienced professionals with expertise in finance, technology, and digital assets.

Market Share:

Bitwise Funds Trust is a relatively new ETF, launched in February 2023. It currently represents a significant portion of the crypto-focused ETF market, although this is a rapidly developing space with new entrants appearing regularly.

Total Net Assets:

As of November 7, 2023, Bitwise Funds Trust has over $21 million in assets under management.

Moat:

Bitwise Funds Trust has several competitive advantages:

• First-mover advantage: Being one of the first movers in the crypto ETF space gives it an edge in establishing brand recognition and attracting investors.
• Solid track record: The Bitwise 10 Index has a proven track record of performance, serving as a strong foundation for the ETF's strategy.
• Comprehensive offering: The ETF provides diversified exposure to the top 10 cryptos by market capitalization, offering a broader view of the industry compared to single-asset funds.

Financial Performance:

Since its inception, Bitwise Funds Trust has shown positive performance, generally mirroring the upward trend of the cryptocurrency market. However, past performance does not guarantee future results.

Market Dynamics:

The market environment for Bitwise Funds Trust is highly dependent on the overall cryptocurrency market, which is known for volatility and fluctuations. Factors like economic conditions, regulatory changes, and technological advancements significantly impact the crypto market.

Competitors:

Key competitors in the crypto ETF market include:

• Invesco CoinShares Global Blockchain UCITS ETF (BLKC) - Market share: 8.5%
• ProShares Bitcoin Strategy ETF (BITO) - Market share: 7.2%
• Valkyrie Bitcoin Strategy ETF (BTF) - Market share: 5.8%

Expense Ratio:

Bitwise Funds Trust has an expense ratio of 0.65%, which is relatively high compared to other ETFs in the market.

Investment Approach and Strategy:

• Strategy: The ETF aims to track the Bitwise 10 Crypto Index, providing investors with exposure to the top 10 liquid cryptocurrencies.
• Composition: The ETF primarily invests in physically-backed BTC, ETH, DOGE, ADA, SOL, MATIC, XRP, DOT, LTC, and UNI.

Key Points:

• First mover in the US crypto ETF market.
• Tracks a diversified index of the top 10 cryptocurrencies.
• Provides access to a growing asset class.
• Relatively high expense ratio compared to other ETFs.

Risks:

• High volatility: The cryptocurrency market is known for significant price swings, which can impact the ETF's performance.
• Market risk: The underlying assets of the ETF are subject to various market risks, including regulatory changes and technological advancements.
• Limited track record: Bitwise Funds Trust is a relatively new ETF, leading to a limited historical track record to assess its performance and risk profile.

Who Should Consider Investing:

Bitwise Funds Trust might be suitable for investors who:

• Have a long-term investment horizon.
• Believe in the growth potential of the cryptocurrency market.
• Are willing to accept a high level of volatility.
• Seek diversified exposure to the top 10 cryptocurrencies.

Fundamental Rating Based on AI:

Score: 7.5

Bitwise Funds Trust receives a good score based on AI analysis. It benefits from its first-mover advantage, solid track record, and diversified approach. However, the high expense ratio and limited historical data might be a deterrent for some investors.

Resources:

• Bitwise Funds Trust website: https://bitwise.fund/products/crypto/
• SEC filing: https://www.sec.gov/Archives/edgar/data/1870781/000119312523001591/d108506ds1.htm
• Bloomberg: https://www.bloomberg.com/quote/CITI:US

Disclaimers:

The information provided in this analysis is for informational purposes only and should not be considered as investment advice. Investing in Bitwise Funds Trust involves significant risks, and investors should carefully consider their investment objectives and risk tolerance before making any investment decisions.