The cryptocurrency investment landscape is evolving rapidly, and Bitwise Asset Management is at the forefront with a groundbreaking new offering. The firm has launched the Bitwise 10 ex Bitcoin Crypto Index Fund, marking the world’s first large-cap crypto index fund focused exclusively on digital assets beyond Bitcoin. This strategic move responds to growing investor demand for diversified exposure to the expanding crypto ecosystem.
With over $1.3 billion in assets under management as of August 2021, Bitwise continues to lead the institutional adoption of digital assets. The new fund enables investors to gain targeted access to high-potential cryptocurrencies that are powering innovation in decentralized finance (DeFi), smart contracts, and non-fungible tokens (NFTs)—sectors that have surged in relevance as Bitcoin's dominance in the market has declined.
A Shift in Market Dynamics
Bitcoin once accounted for nearly 70% of the total cryptocurrency market capitalization. However, that figure has dropped to just 42% over the past year, reflecting a significant diversification trend. Assets like Ethereum, Solana, and Cardano have emerged as key players, contributing to a more balanced and dynamic market.
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This shift underscores the importance of broadening investment horizons beyond Bitcoin. While BTC remains a foundational asset, the real innovation—and opportunity—lies in the ecosystems built on alternative blockchains. The Bitwise 10 ex Bitcoin Crypto Index Fund is designed to capture this growth by focusing on the nine largest cryptocurrencies in Bitwise’s flagship index, excluding Bitcoin itself.
Fund Composition and Strategic Focus
As of August 31, 2021, the fund’s holdings were distributed as follows:
- Ethereum (ETH): 68.53%
The leading smart contract platform, ETH powers thousands of decentralized applications and remains central to DeFi and NFT markets. - Cardano (ADA): 15.43%
Known for its research-driven approach, Cardano offers a scalable and energy-efficient blockchain with growing adoption in emerging markets. - Solana (SOL): 5.49%
With high throughput and low transaction fees, Solana has become a preferred platform for developers building fast, scalable dApps. - Bitcoin Cash (BCH), Chainlink (LINK), Litecoin (LTC), Uniswap (UNI), Polygon (MATIC), Stellar (XLM)
These assets round out the portfolio, representing key innovations in payments, oracle services, decentralized exchanges, layer-2 scaling, and cross-border transactions.
This composition ensures exposure to a wide range of use cases across the crypto economy, from decentralized trading to blockchain interoperability and financial inclusion.
Designed for Professional Investors
Matt Hougan, Chief Investment Officer at Bitwise Asset Management, emphasized that the fund was developed in direct response to client demand:
“Many investors today have exposure to bitcoin but are excited by the dynamic developments taking place around other assets. This new fund allows investors to complement their existing bitcoin exposure with a professionally managed solution that captures other large-cap cryptoassets.”
The fund tracks the Bitwise 10 ex Bitcoin Large Cap Crypto Index, which is governed by a formal methodology and overseen by the Bitwise Crypto Index Committee and Advisory Board. Each asset undergoes rigorous screening for liquidity, custody availability, and regulatory considerations before inclusion.
Risk Management and Institutional-Grade Infrastructure
Investing in cryptoassets involves substantial risk, including volatility, regulatory uncertainty, and technological change. To mitigate these risks, Bitwise employs a disciplined approach:
- Market-cap weighting ensures alignment with market consensus.
- Custody through Coinbase Custody Trust Company, LLC, the world’s largest crypto custodian, provides institutional-grade security.
- No performance fees on either share class promote transparency and investor alignment.
The fund is available to accredited investors via private placement in two share classes:
- Investor Shares: $25,000 minimum investment, 2.5% expense ratio
- Institutional Shares: $1 million minimum investment, 2.0% expense ratio
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Expanding Access to Crypto Innovation
Bitwise’s broader product suite reflects its mission to simplify access to crypto opportunities. In addition to this new fund, the firm offers:
- The Bitwise 10 Crypto Index Fund (OTCQX: BITW) – the world’s largest and longest-running crypto index fund
- The Bitwise DeFi Crypto Index Fund – the first index fund dedicated to decentralized finance
- Single-asset funds for Bitcoin (BTC), Ethereum (ETH), Uniswap (UNI), and Aave (AAVE)
These products cater to financial advisors, registered investment advisors (RIAs), family offices, hedge funds, and high-net-worth individuals seeking professional-grade exposure to digital assets.
Core Keywords Integration
This article centers on several key SEO terms that reflect current search trends and investor interest:
- Crypto index fund
- Ex Bitcoin crypto strategy
- Large-cap cryptocurrencies
- DeFi investments
- Ethereum ETF alternatives
- Institutional crypto investing
- Diversified crypto portfolio
- Smart contract platforms
These keywords are naturally woven into the content to enhance search visibility while maintaining readability and relevance.
Frequently Asked Questions
Q: What is the purpose of an ex Bitcoin crypto index fund?
A: It allows investors to gain diversified exposure to major cryptocurrencies other than Bitcoin, helping them participate in growth across DeFi, smart contracts, and emerging blockchain platforms.
Q: How does this fund differ from traditional crypto index funds?
A: Unlike broad-market or Bitcoin-heavy funds, this product specifically excludes Bitcoin, enabling targeted allocation to alternative large-cap digital assets driving innovation.
Q: Who should consider investing in this fund?
A: Accredited investors seeking professional management of a diversified crypto portfolio beyond Bitcoin—especially financial advisors and institutions looking for structured exposure.
Q: Is there a secondary market for shares?
A: While Bitwise may pursue secondary market quotation, there is no guarantee of success. Investors should be prepared to hold their investment indefinitely.
Q: What risks are associated with this fund?
A: Risks include extreme price volatility, regulatory changes, technological obsolescence, and limited liquidity. As with all crypto investments, investors may lose some or all of their capital.
Q: How often is the index rebalanced?
A: The index follows a formal methodology with regular reviews by the Bitwise Crypto Index Committee to ensure ongoing relevance and integrity.
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Final Thoughts
The launch of the Bitwise 10 ex Bitcoin Crypto Index Fund signals a maturing crypto investment market. As institutional interest grows and innovation accelerates beyond Bitcoin, tools like this enable sophisticated capital allocation across the most impactful digital assets. For forward-thinking investors, diversification isn't just about reducing risk—it's about capturing opportunity across the full spectrum of blockchain innovation.