Bitcoin proponents argue that it is the ultimate alternative asset, combining high potential returns with low correlations and intraday liquidity. Has that held up during the recent market volatility?
In the upcoming webcast, Bitcoin and The Coronavirus Crisis: Does Crypto Still Belong In Client Portfolios?, Matt Hougan, Global Head of Research, Bitwise Asset Management, unveils new research examining bitcoin’s impact on a traditional 60/40 portfolio and explains why he thinks all financial advisors should be considering an allocation to bitcoin right now.
Bitwise Asset Management is the creator of the world’s first cryptocurrency index fund and offers low-cost, liquid beta funds, holding bitcoin and ethereum exclusively.
The Bitwise Bitcoin Fund and the Bitwise Ethereum Fund are the second and third strategies in the Bitwise fund family, joining the broad-market Bitwise 10 Private Index Fund. The funds are driven by inbound client interest and investor dissatisfaction with existing options, many of which carry premiums, charge exit fees, have lockups, and/or charge expenses to the fund outside the stated management fee.
The Bitwise Bitcoin Fund holds bitcoin and captures the total returns available to investors in the world’s largest crypto asset, including any meaningful hard forks and airdrops. The Bitwise Ethereum Fund does the same for ether. Funds safeguard holdings in 100% cold storage with an institutional third-party custodian and prepare simple K-1 tax documents for investors each year.
In the past few years, a dozen regulated, insured custodians have emerged, along with a variety of trading venues with material liquidity. Investors may now find that futures and the ability to hedge are in place. Offerings are being made available from traditional financial institutions like Fidelity, Susquehanna, and CME, with more coming online.
Looking ahead, Bitwise believes that millennials, the rise of China, demand for privacy, rising interest for alternative investments, and headwinds among traditional assets are significant factors that will continue to fuel demand for cryptocurrencies.
Financial advisors who are interested in learning more about cryptocurrencies can register for the Thursday, April 16, webcast here.