Today Bitwise Asset Management announced it had closed a $70 million Series B at a valuation of more than $500 million, led by Elad Gill and Electric Capital. A long list of high profile investors includes Henry Kravis, Stanley Druckenmiller, Bridgewater CEO David McCormick and Third Point LLC.
The cryptocurrency index fund manager says it is now profitable after growing assets under management to more than $1.2 billion, a 20 times year-on-year increase.
Bitwise targets financial advisors and brokers with its offerings and says it has 200 of these clients. “Bitwise is focused on equipping investment professionals with the products, education and relationships they need to steward crypto and blockchain investments on behalf of their clients and LPs over the long run,” said Bitwise CEO Hunter Horsley.
“This new round of capital will help us substantially grow our organization, expand our offerings, and cement our position as the premier crypto partner for professional investors.”
The company’s flagship product is the Bitwise 10 Crypto Index Fund, an over the counter traded fund that consists of ten cryptocurrencies, although Bitcoin accounts for more than two thirds, and Ethereum another 26.6%.
Other major fund managers in the space are Galaxy Digital, Bitcoin specialist NYDIG which Stone Ridge founded, and Grayscale.
