- Bitwise’s AUM has surpassed $100 million.
- There have been increased activities of professional investors on the platform since the market upticks began.
In recent days, the crypto market demand peaked as digital currencies began increasing in price, especially Bitcoin (BTC). The largest crypto by market cap broke past $13,000 recently, soaring further to a yearly high above $13,700. The uptrends in the market resulted in massive growth for several crypto-related products and assets managers, like Bitwise.
Bitwise posts $100 million growth in AUM
Several reports noted a huge demand in the crypto market from both individuals and institutions, as Bitwise reiterated. In recent information, the index and beta crypto-asset funds provider announced an influx of institutional investors on its platform. The increased activities of these professional investors pushed up its assets under management (AUM) to more than $100 million.
The most demand on the platform was directed towards the Bitwise 10 Crypto Index Fund. As explained, the product covers the most-traded digital currencies by market capitalization, which includes Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and more. Following the recent increase in Bitwise AUM, the Crypto Index Fund accounts for 80 percent of its entire assets under management.
The institutions are coming
While commenting on the Bitwise growth, the company’s CIO, Matt Hougan, noted that “2020 is the year crypto crossed the chasm for professional investors.” Hougan also referenced PayPal’s move to debut cryptocurrency buying and selling features for its vast customers. The company’s decision to “embrace crypto last week was groundbreaking,” he added.
In previous years, many challenges had caused the slow adoption of digital currencies by institutional investors. This includes the issue of adequate custody, regulatory uncertainties, lack of understanding, reputation, and so on. However, as the industry matures, most of these challenges have been waived off.