Bitwise Asset Management experienced record inflows in the fourth quarter as institutional demand for Bitcoin, Ether and other cryptosystems continued to grow.
Leading cryptomoney fund manager Bitwise Asset Management reached a major milestone in the fourth quarter of 2020 as inflows into its products reached new all-time highs, underscoring increased institutional demand for digital assets.
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The company’s assets under management, or AUM, exceeded $500 million, according to a news release on Monday. That’s a significant increase from the $100 million in AUM held on October 28, 2020.
The press release said:
„Bitwise posted record inflows into its funds during the fourth quarter of 2020, exceeding the total cumulative inflows for 2018 and 2019 combined.
Most of the new demand came from investment professionals such as financial advisors, hedge funds, corporations and other institutional investors.
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The Bitwise 10 Crypto Index Fund, which provides broad exposure to the largest digital assets, is by far the most popular product, with more than $400 million in assets under management. The fund holds Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and seven other crypto currencies.
Bitwise says demand for its Bitcoin and Ethereum focused funds also increased in the fourth quarter.
Hunter Horsley, co-founder and CEO of Bitwise, said: „The speed at which professional investors are moving towards cryptomontages at this time is remarkable.
Prior to the new year, Bitwise announced that it had liquidated its position in XRP in response to a lawsuit filed against Ripple Labs by the U.S. Securities and Exchange Commission. Beyond the XRP fiasco, the crypto market seems poised to expand as more institutional investors join in.
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David Lawant, a research analyst at Bitwise, recently told Cointelegraph that there is less „professional risk“ in entering cryptomonies, which means that more institutions are joining. Bitcoin’s growing appeal as a safe haven asset that can potentially offset so-called „high currency inflation“ has become a key catalyst for adoption, he said.