Watch Out GrayScale, Make Room For Bitwise's Bitcoin Fund

Grayscale is the company behind the Grayscale Bitcoin Trust (GBTC). GBTC is a trust which buys and holds bitcoin and and other cryptocurrencies. For years, they have had a first to market competitive advantage. But I keep saying there is plenty of room for more players within all Bitcoin space, Defi space, blockchain space, etc.

Founded in 2017, Bitwise Asset Management pioneered the first cryptocurrency index fund and is the leading provider of rules-based exposure to the cryptoasset space. Bitwise saw record inflows into its funds during Q4 2020. The inflows were so great that they surpassed the total cumulative inflows of 2018 and 2019 combined. Hunter Horsley, cofounder and Chief Executive Officer of Bitwise said, “the speed at which professional investors are moving into crypto right now is remarkable."

Bitwise already has the Bitwise 10 Crypto Index Fund (BITW), which seeks to track an index of the 10 largest cryptoassets such as bitcoin, ether, and Litecoin, etc. But the demand for Bitcoin can’t be met with this one fund. It’s why Bitwise has begun the process to launch a fund dedicated to solely Bitcoin. The Fund charges a 1.5% expense ratio, which includes costs related to custody, tax, accounting, and management fees, lower than competing products.

NOTE: Grayscale Bitcoin Trust (GBTC) charges 2% + a premium. But that premium should come down as more players enter the space.