With crypto funds and indexes coming mainstream, the Bitwise options for the Aave and Uniswap are likely to see increased embrace from investors across the board.
Digital currency asset manager, Bitwise has launched independent Crypto Funds for decentralized finance (DeFi) tokens, Aave (AAVE), and Uniswap (UNI). The new funds, which complements the firm’s suite of institutional investor-centered digital investment was notably in response to the demand for DeFi products from Wall Street firms.
Per the report by Coindesk, the new funds will invest directly in the underlying assets, AAVE and UNI tokens, both of which come off as one of the largest DeFi tokens by market capitalization. Aave is a non-custodial lending protocol, known for its flash loans, trustless, uncollateralized loans where borrowing and repayment must occur in the same transaction. Aave is building an ecosystem with more innovative use cases for its products.
Uniswap is a decentralized exchange and an Automated Market Maker (AMM) that marked a unique shift to the DeFi trading platform world. Uniswap is a fully decentralized on-chain protocol for token exchange on Ethereum that uses liquidity pools instead of order books. Uniswap operates quite differently from centralized exchanges as it is users that supply the liquidity which powers all transactions that take place on the platform.
The duo of AAVE and UNI are built using the ERC-20 standard and have both seen good growths from inception to date. According to the filing with the Securities and Exchange Commission (SEC), as viewed by Coindesk, the Aave fund has as much as $92 million by the end of April. A Bitwise Spokesperson said without providing additional details that both funds currently harbor “meaningful assets.”
Current Bitwise Crypto Funds Constitution
As a major player in getting the digital currency offerings to the mainstream market, Bitwise has a number of crypto funds including the Bitwise 10 Large Cap Crypto Index, the Bitwise Decentralized Finance Crypto Index, Bitwise Crypto Innovators 30 Index with regularly updated asset reconstitution.
The firm recently announced the recomposition of these funds. While there were no changes to the constituents of the Bitwise 10 Large Cap Crypto Index, the DeFi index saw two notable changes as Ren (REN) and Curve (CRV) entered the index, replacing Synthetix (SNX) and UMA (UMA). The Innovators Index which is updated on a quarterly basis saw no update. The firms that take up the largest bulk of the innovation index include MicroStrategy Incorporated (NASDAQ: MSTR), Coinbase Global Inc (NASDAQ: COIN), and Silvergate Capital Corp (NYSE: SI) amongst others.
The launch of crypto indexes is increasing becoming an avenue tech innovators deploy to expose investors indirectly to the digital currency ecosystem. Per an earlier Coinspeaker report, index publisher MSCI back in June also mulling the idea of launching crypto indexes.
In a move similar to that being considered by MSCI, the S&P Dow Jones has already launched its index for the duo of Bitcoin and Ethereum. The latter’s indexes are three and dubbed the S&P Bitcoin Index which measures the performance of Bitcoin, the S&P Ethereum Index, designed to measure the performance of Ether, and the S&P Crypto Mega Cap Index dedicated to measuring the performance of both digital currencies.
With crypto funds and indexes coming mainstream, the Bitwise options for the Aave and Uniswap are likely to see increased embrace from investors across the board.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
