According to the latest reports, a top asset management firm “Bitwise” has made a huge announcement for US cryptocurrency users. The firm has announced that it has launched the exchange-traded fund (ETF) of the cryptocurrency industry innovators.
Bitwise has confirmed that the name of its exchange-traded fund is BITQ, which would be its new fund. With the launch of the new ETF, the users/investors will have access to the stocks and shares of several companies. The companies in this particular case would be the public ones that are already taking part in the growing markets of altcoins and Bitcoin (BTC).
The investments for the BITQ would be based on the 30 Index of the Crypto Industry Innovators for Bitwise. The firms included in the 30 Index represent the companies that are top of the list in terms of interactions with cryptocurrencies. These companies are constantly involved in cryptocurrency-related activities.
There is one particular condition that every firm must meet in order for them to be inducted into the 30 Index list. That condition is the minimum liquid cryptocurrency assets criteria that a firm must have on its balance sheet if they wish to be inducted into the 30 Index.
Now, the liquid crypto-asset requirement is a minimum of $100 million that a firm needs to show in its balance sheet.
An announcement was made on May 12 around the revenue generated by the 30 Index companies. According to the announcement, the companies in the 30 Index generate at least 75% of their annual revenue through cryptocurrencies. These companies generate their revenues by investing them in cryptocurrencies.
The announcements have also revealed that if it is not investments in cryptocurrencies, then these companies have at least 75% of their net assets in the form of cryptocurrency assets.
The chief executive at Bitwise, Hunter Horsley stated that the regulatory authorities in the United States are extremely sensitive when it comes to cryptocurrencies.
The majority of the users in the United States have no access to Bitcoin (BTC) related products due to the lack of regulatory infrastructure. This is the reason why the majority of the investors and major institutions have no exposure to Bitcoin (BTC) products.
Therefore, the firms and institutions in the United States are not able to benefit from the rallies that Bitcoin (BTC) experiences on a regular basis.
However, with the help of the exchange-traded fund (ETF), the investors in the United States will gain more access to the Bitcoin (BTC) and altcoin markets.
The US-based investors will be able to gain the same amount of benefits and profits from the cryptocurrencies just like other countries are availing now.