Bitwise Asset Management, the leading crypto fund manager, has reached a major milestone in the fourth quarter of 2020 as inflows into its products surged to new record highs by underscoring heightened institutional demand for digital assets.
It has been reported that the firm’s assets under management (AUM) surpassed $500 million. That’s a considerable increase from the $100 million in AUM held on October 28, 2020.
The report stated:
“Bitwise saw record inflows into its funds during Q4 2020, surpassing the total cumulative inflows of 2018 and 2019 combined.”
However, most of the new demand came from investment professionals such as financial advisers, hedge funds, corporations, and other institutional investors.
The report further said that the Bitwise 10 Crypto Index Fund, which provides broad exposure to the largest digital assets, is by far the most popular product, with over $400 million in assets under management. The fund holds Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and seven other cryptocurrencies.
Also, Bitwise said demand for its Bitcoin and Ethereum-focused funds also saw higher demand in the fourth quarter.
Hunter Horsley, the co-founder and CEO of Bitwise, said:
“The speed at which professional investors are moving into crypto right now is remarkable.”
Likewise, before the New Year, Bitwise announced that it had liquidated its position in XRP in response to the lawsuit filed against Ripple Labs by the United States Securities and Exchange Commission. Beyond the XRP fiasco, the cryptocurrency market appears poised to expand as more institutional investors come on board.
David Lawant, a research analyst at Bitwise, recently said that there’s less “career risk” for entering crypto, which means more institutions are coming on board.
Thus, he said that Bitcoin’s growing appeal as a safe-haven asset that can potentially offset the so-called “great monetary inflation” has become a key catalyst for adoption.
Source: Cointelegraph