The Bitwise NFT Index fund is arguably the very first of its kind as the company seeks to bolster its presence as a reliable outfit that offers both retail and institutional investors an alternative avenue to partake in the ongoing cryptocurrency revolution.
If index funds can be launched for digital currencies, why not Non-Fungible Tokens (NFTs)? This is the question that Bitwise Asset Management has launched the ‘Bitwise Blue-Chip NFT Index Fund’ to give accredited investors in the United States the opportunity to gain access to iconic NFT collections.
The Bitwise Blue-Chip NFT Index Fund will feature a total of 10 NFTs, ranked as the most prestigious around today. The NFTs in the collection include CryptoPunks, Bored Ape Yacht Club (BAYC), Meebits, Mutant Ape Yacht Club, VeeFriends, Autoglyphs, Fidenza, CyberKongz Genesis, Cool Cats NFT, and Chromie Squiggle.
“New frontiers in the art are rare. Entirely new artistic mediums are even rarer,” said Bitwise CIO Matt Hougan, adding that NFTs have emerged as the first digitally native medium for owning art and collectibles, “with enormous potential for meaning, value, and use in our increasingly digital world.”
The company said the minimum investment amount is pegged at $25,000, a price that is notably below the floor price of most of the listed NFTs. For example, the floor price for Bored Ape Yacht Club, one of the most successful NFT collections of the year is currently pegged at 50 ETH (worth approximately $190,000) per data from popular NFT marketplace, OpenSea.
According to Hougan, the goal of the Bitwise Blue-Chip NFT Index Fund is to “make owning the blue-chip NFTs emerging in this historic new category simpler.” The continuous rise in the valuation of these NFT collections is essential for the fund to print gains, and with the milestone community value that is being added by the teams behind these NFTs, this growth is all a matter of when.
Just like the majority of the current Bitwise indexes, the constituents of the fund will be rebalanced every three months. Limited quantity NFT collections which have 100 pieces each as well as those 1:1 NFTs were not included as a part of the index as Bitwise looks to integrate collections that have continued to gain widespread global and diverse adoption around the world.
Bitwise NFT Index: A Standard for More to Come?
The Bitwise NFT Index fund is arguably the very first of its kind as the company seeks to bolster its presence as a reliable outfit that offers both retail and institutional investors an alternative avenue to partake in the ongoing cryptocurrency revolution.
Bitwise has floated as many as 8 different indexes this year alone. Amongst its current products includes the Bitwise DeFi Index Fund and the Bitwise “ex Bitcoin” Index Fund amongst others. Bitwise is one of the biggest players in the digital currency asset management space with over $1.6 billion in assets under management and its NFT index fund may serve as a standard for others looking to trail the path.
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