The financial market enables various ways to generate income from the marketplace. Many investors like to get passive income over a period and not participate in frequent trades. Index funds are the right choice for these investors. Although the crypto industry is a new addition to the financial market, there are index funds that track the performance of crypto assets, such as Bitwise.
However, it is mandatory to understand the fund, investment strategies, and holding assets before investing in any fund. This article will introduce you to the Bitwise fund and its holding.
What is the Bitwise fund?
The Bitwise 10 Crypto Index Fund tracks the performance of the top ten high-valued cryptocurrencies. The inception date of this fund is 22 Nov 2017, which goes under the fund type “Crypto Index Fund.” This fund has outstanding shares approx. 20,241,947 and has net assets worth $805M under management. The expanse ratio of BITW is 2.5%.
The price of this fund is floating near $31.25 today, which made a high near $144 in Feb 2021. This fund involves no performance fees.
Notable factors about this fund are:
- Income tax
The fund is classified as a partnership for the United States federal income tax purposes, which is a crucial drawback. Investors receive a K-1 by the end of the year.
- Volatility risks
This fund involves risks as it tracks the performances of volatile assets like cryptocurrencies.
- Large-cap focus
This fund focuses on large-cap, whereas small-cap funds generate massive returns.
- Competitors
This fund involves competitors primarily on top Grayscale Digital Large Cap Fund (GDLC).
The holdings of the fund
BITW tracks performances of top crypto coins that are:
- Bitcoin (BTC)
- Ethereum (ETH)
- Solana (SOL)
- Cardano (ADA)
- Litecoin (LTC)
- ChainLink (LINK)
- Polygon (MATIC)
- Bitcoin Cash (BCH)
- Algorand (ALGO)
- Uniswap (UNI)
Let’s check the basic info of each asset.
Bitcoin (BTC)
Bitcoin is the top cryptocurrency in the crypto industry. The price of BTC/USD is currently floating near $41085.59 today with a 24-H trading volume of $31,287,729,235.
- Launching period: Jan 2009
- Fully diluted market cap: $862,135,313,011
- Live market cap: $778,822,251,227
- Circulating supply: 18,970,650.00 BTC
- Total supply: 18,970,650 BTC
- Max supply: 21,000,000 BTC
- Volume / market cap: 0.04015
Ethereum (ETH)
Ethereum is the second-largest cryptocurrency in cryptocurrencies, only next to Bitcoin. The price of ETH/USD is currently floating near $2809.88 today with a 24-H trading volume of $20,404,534,721.
- Launching period: 2014
- Fully diluted market cap: $337,329,006,066
- Live market cap: $336,760,296,274
- Circulating supply: 119,769,736.56 ETH
- Total supply: 119,769,737 ETH
- Max supply: not available
- Volume / market cap: 0.06035
Solana (SOL)
Solana is a highly active open source project that provides DeFi solutions. The price of SOL/USD is currently floating near $95.85 today, with a 24-H trading volume of $3,137,801,632.
- Launching period: Mar 2020
- Fully diluted market cap: $49,055,341,677
- Live market cap: $30,664,762,191
- Circulating supply: 320,062,560.23 SOL
- Total supply: 511,616,946 SOL
- Max supply: not available
- Volume / market cap: 0.1013
Cardano (ADA)
Cardano ios POS blockchain-based platform aims to allow innovators, changemakers, and visionaries to bring positive global change. The price of ADA/USD is currently floating near $0.925 today, with a 24-H trading volume of $1,784,555,471.
- Launching period: 2017
- Fully diluted market cap: $41,681,061,569
- Live market cap: $31,175,099,751
- Circulating supply: 33.66B ADA
- Total supply: 34,143,444,450 ADA
- Max supply: 45,000,000,000 ADA
- Volume / market cap: 0.05707
Litecoin (LTC)
Litecoin is another popular altcoin with designing purpose of providing secure, low-cost, and fast payments. The price of LTC/USD is currently floating near $108.991 today, with a 24-H trading volume of $891,578,715.
- Launching period: 13 Oct 2011
- Fully diluted market cap: $9,156,812,432
- Live market cap: $7,602,272,515
- Circulating supply: 69,739,431.28 LTC
- Total supply: 84,000,000 LTC
- Max supply: 84,000,000 LTC
- Volume / market cap: 0.1168
ChainLink (LINK)
Chainlink is a blockchain-based platform, a blockchain abstraction layer allowing smart contracts to connect universally. The price of LINK/USD is currently floating near $14.648 today, with a 24-H trading volume of $847,309,838.
- Launching period: 2017
- Fully diluted market cap: $14,657,286,491
- Live market cap: $6,845,087,364
- Circulating supply: 467,009,549.52 LINK
- Total supply: 1,000,000,000 LINK
- Max supply: 1,000,000,000 LINK
- Volume / market cap: 0.1238
Polygon (MATIC)
Polygon is an easy-to-use and well-structured platform for infrastructure development and Ethereum scaling. The price of MATIC/USD is currently floating near $1.547 today with a 24-H trading volume of $1,235,422,858.
- Launching period: Oct 2017
- Fully diluted market cap: $15,470,417,653
- Live market cap: $11,692,311,090
- Circulating supply: 7.56B MATIC
- Total supply: 10,000,000,000 MATIC
- Max supply: 10,000,000,000 MATIC
- Volume / market cap: 0.1053
Bitcoin Cash (BCH)
Bitcoin Cash is an electronic cash system (P2P) that aims to become sound global money with high transaction capacity (big blocks), fast payments, privacy, and micro fees. The price of BCH/USD is currently floating near $326.41 today, with a 24-H trading volume of $4,258,005,493.
- Launching period: 2017
- Fully diluted market cap: $6,854,561,265
- Live market cap: $6,202,577,940
- Circulating supply: 18,995,918.75 BCH
- Total supply: 18,995,919 BCH
- Max supply: 21,000,000 BCH
- Volume / market cap: 0.6874
Algorand (ALGO)
Algorand is a blockchain-based, decentralized, self-sustaining platform that supports many applications. The price of ALGO/USD is currently floating near $0.841 today with a 24-H trading volume of $259,379,913.
- Launching period: Jun 2019
- Fully diluted market cap: $8,402,078,701
- Live market cap: $5,561,358,330
- Circulating supply: 6.62B ALGO
- Total supply: 7,056,334,264 ALGO
- Max supply: 10,000,000,000 ALGO
- Volume / market cap: 0.04641
Uniswap (UNI)
Uniswap is a blockchain-based decentralized trading protocol that facilitates automated trading of Defi tokens. The price of UNI/USD is currently floating near $10.135 today with a 24-H trading volume of $495,519,960.
- Launching period: Nov 2018
- Fully diluted market cap: $10,129,355,161
- Live market cap: $6,956,109,916
- Circulating supply: 686,727,793.37 UNI
- Total supply: 1,000,000,000 UNI
- Max supply: 1,000,000,000 UNI
- Volume / market cap: 0.07137
Final thought
The crypto index fund BITW has shown an impressive return in recent years. It allows making a good passive income by investing for a particular period. We suggest estimating investment amount and duration and matching return expectations before investing in this fund.
