Crypto index fund manager Bitwise Asset Management announced the launch of the Bitwise Web3 ETF (NYSE Arca: BWEB). The fund’s strategy gives investors access to companies well positioned to benefit from the emergence of Web3, a term used to describe the next wave of the internet’s development characterized by greater decentralization and individual ownership of data.
As the Web3 name suggests, one well-established paradigm defines the internet’s evolution in three stages. The earliest version of the Web (Web1) consisted of “read-only” web sites. Next came social media sites like Facebook and Twitter, where users could both read and write content (Web2). With the inception of Web3, users have the ability not only to read and write content, but to own digital objects, assets, and data that are largely built on crypto and blockchain technology.
“Today, many experts believe we’re on the cusp of a major evolution in the core architecture of the internet,” said Bitwise CIO Matt Hougan in a news release. “Any shift of that magnitude will depend on companies that can provide the services and infrastructure to support it. With the Bitwise Web3 ETF, we’re excited to give investors the opportunity to capture one of the fastest-emerging themes in technology through a diverse mix of companies that we believe will lead the charge.”
BWEB tracks the Bitwise Web3 Equities Index, which includes broad exposure to companies spread across five key themes: Web3 infrastructure providers, Web3 finance, Web3-enabled metaverse and digital worlds, Web3-enabled creator economy, and Web3 development and governance. More than 85% of the portfolio will be invested in companies directly linked to Web3 themes and business activities.
“Today’s Web3 companies are not only helping reshape the internet as we know it, but they’re among some of the most disruptive and fastest-growing firms in the world,” added Bitwise CEO Hunter Horsley. “The Bitwise Web3 ETF seeks to capitalize on this great opportunity by offering investors of innovation a straightforward way to access the space. It also leverages our expertise in crypto—the cornerstone of Web3—as many of these companies are centering their businesses on blockchain technology. We’re looking forward to seeing their anticipated continued growth as the space unfolds.”
The fund’s index is rebalanced quarterly. The fund is available to both retail and institutional investors through their advisors and is not subject to investment minimums. BNY Mellon is the fund’s custodian, and Foreside Fund Services is its distributor.
The launch of the Bitwise Web3 ETF is part of a growing suite of Bitwise investment solutions that help investors gain professionally managed exposure to the crypto market, including the Bitwise Crypto Industry Innovators ETF (BITQ), OTC-traded trusts, private placement funds, and separately managed accounts. Today, Bitwise serves RIAs, multifamily offices, financial advisors, and other institutional managers.
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