Bitwise launches the world’s first NFT index fund

Bitwise launches world's first NFT index fund
Updated: 30 May, 2022
2 mins read

Crypto index fund manager Bitwise has announced the launch of the first-ever non-fungible tokens index fund, aiming to offer investors more exposure to the growing NFT sector.

In a press release, Bitwise stated that the Bitwise Blue-Chip NFT Index Fund product targets investors interested in NFTs but has limited time to participate in regular auctions alongside bidding art collectibles. 

Upon launching, the fund hosts the ten most valuable NFT collections, including CryptoPunks, Bored Apes, Fidenza, etc. The collections have a combined market capitalization of over $6 billion. 

Bitwise indicated that the selected collections had been weighted on the basis of market capitalization since it gives room for optimizing liquidity and price discovery.

According to Bitwise, the need for the fund has been necessitated by the over $10 billion in NTF trading recorded in the third quarter of 2021 alone. 

NTFs role in crypto sector growth

Bitwise CEO Hunter Horsley notes that the NFTs have become a significant aspect of the ongoing cryptocurrency growth. 

“And recently, it’s become clear that any conversation about crypto’s potential must include NFTs, which are fundamentally changing how we think about not just owning art but property rights in general. Being able to invest in some of the NFT movement’s most defining collections as these evolve is an opportunity we wanted to make available to those who are as compelled by the space as we are,” said Horsley. 

Elsewhere, Bitwise CIO Matt Hougan acknowledged that investors should be aware of the existing risks despite the launch. He singled out the market’s infancy, volatility, liquidity, and custody challenges as things to look out for. 

The NFT index fund adds to Bitwise’s array of recently launched crypto funds, including the Bitwise DeFi Index Fund and the Bitwise “ex Bitcoin” Index Fund.

The fund is currently available to select investors for a private placement subscription at $25,000 on the minimum investment. The fund is designed to offer monthly redemptions after the initial lock-up period.

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Justinas Baltrusaitis

Justin crafts insightful data-driven stories on finance, banking, and digital assets. His reports were cited by many influential outlets globally like Forbes, Financial Times, CNBC, Bloomberg, Business Insider, Nasdaq.com, Investing.com, Reuters, among others.