Equities

The Case for Crypto Equities

Crypto assets like bitcoin and ethereum have attracted enormous attention lately. Advisors are becoming more educated on this evolving asset class and getting more comfortable developing allocation strategies for their clients.

In the upcoming webcast, The Case for Crypto Equities, Bitwise Asset Management’s CIO, Matthew Hougan, and director of research, David Lawant, will examine the case for a “picks and shovels” approach to investing in the crypto boom and look at the companies building the infrastructure that gives crypto an opportunity to thrive.

For example, the Bitwise Crypto Industry Innovators ETF (BITQ) offers a way for investors to gain exposure to the crypto market without the challenges of directly holding crypto assets like bitcoin and ethereum.

“Just as e-commerce and mobile changed the way the world works, bitcoin and crypto are creating disruptive change today. The Bitwise Crypto Industry Innovators ETF (NYSE: BITQ) can potentially help investors capitalize on this wave of innovation,” according to Bitwise.

BITQ seeks to track the Bitwise Crypto Industry Innovators 30 Index, designed with Bitwise’s industry expertise to capture “pure-play” companies engaged in actual, material activity in the crypto sector. Additionally, the index includes companies with at least $100 million of liquid crypto assets on their balance sheet.

In most cases, companies in the new index must derive at least 75% of their revenue from directly servicing cryptocurrency markets or have at least 75% of their net assets accounted for by direct holdings of liquid crypto assets. Such companies may, for example, offer crypto brokerage services, financial and banking services, mining solutions, technology solutions, or analytics solutions. The index rebalances quarterly.

The index is designed specifically to capture the unique characteristics of the crypto equity market. For example, the index has a “fast-entry” rule that allows new IPOs and direct listings to enter the index one day after their debuts, allowing the index to adapt to the rapidly changing market.

Financial advisors who are interested in learning more about investing in the crypto sector can register for the Friday, December 3 webcast here.


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