Bitwise (OTC:BITW) has raised $70 million from some of the most reputable names on Wall Street with its unique strategy to bring new investment into the crypto space.
Key Takeaways
- Bitwise has completed a $70 million funding round led by Elad Gil and Electric Capital. A host of recognized Wall Street figures also participated.
- The asset manager offers crypto index funds to accredited investors in traditional finance markets.
- The funds will be used to grow Bitwise and expand its offerings, the firm's CEO confirmed.
Bitwise has completed a $70 million Series B funding round led by Elad Gil and Electric Capital.
Bitwise Closes Series B Round
Bitwise Asset Management, a cryptocurrency firm with $1.2 billion in assets under management, has closed a $70 million funding round.
The firm announced it had completed the raise Tuesday. The $70 million sum puts the company’s valuation at $500 million. Elad Gil and Electric Capital led the round, while other participants included Wall Street faces, like Stanley Druckenmiller and Third Point’s Daniel Loeb, Bridgewater’s David McCormick, and Blackstone’s Nadeem Meghji.
Launched in 2017, Bitwise is the world’s largest crypto index fund. Its 10 Crypto Index Fund offers exposure to some of the leading cryptocurrencies in a liquid, easy, and cheap manner. The fund is particularly popular with those who want crypto exposure without going through centralized or decentralized exchanges.
Speaking of the raise, Bitwise CEO Hunter Horsley said:
“Five years from now, while some investors will still be trading crypto portfolios themselves, many long-term investors will want to rely on the same financial advisors, processes and brokerages they use for every other asset class.”
He added that the funds would go towards growing the business and broadening the scope of its products.
Bitwise has strong ties with financial advisory firms and family offices across the U.S. and plans to become the go-to solution for easy crypto exposure for the everyday investor. The firm is also piloting a DeFi index fund for accredited investors consisting of nine DeFi tokens, namely AAVE, SNX, UNI, MKR, YFI, COMP, UMA, LRC, and ZRX.
Bitwise has also applied for a Bitcoin ETF, though the outcome is pending the verdict of the relevant U.S. authorities.