Bitwise Asset Management review: Scam Alert! Bitwise index fund

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We are reviewing Bitwise Asset Management program at bitwiseinvestments.com, a site that claims to be the world’s first Cryptocurrency index fund, offering Bitcoin ETF under a ticker symbol that shall be determined later this year. I have looked around for Bitwise Asset Management reviews but have failed to find customer feedback regarding this firm and the quality of service which they offer.

I like to rely on facts and customer reviews from reliable sources and this review is not going to be any different.

Lately, Cryptocurrencies are growing at a phenomenal rate and the most aggressive traders are making about 25% monthly returns trading Bitcoin and other Crypto currencies.

Bitwiseinvestments.com Review (Bitwise Asset Management)

The main selling point on this site is that Bitwise Index Fund is offering 10 private index funds to investors (otherwise known as Bitwise 10 index).

bitwise investments review

They claim that their service offers a smart way to enjoy diversified exposure to Crypto currency assets.

They claim that the firm is tracking a basket of the largest coins known as ”Bitwise 10 Large Cap Crypto Index” weighted by five-year diluted market capitalization and are re-balanced on a monthly basis as well. The firm has invested in PR across the internet where they basically pay blogs and magazines to announce the rolling out of their business.

For starters, the term re-balancing can be learned at Investopedia. They have a good tutorial on what re-balancing is and what it entails. In case you want to be an educated investor, that link can provide a good resources for learning.

The firm accepts a minimum deposit of $25,000 and is currently accepting US investors only. I don’t know why this is so because Crypto currencies are supposed to remove boundaries, letting investors enjoy smart money that is not governed by any government or financial institution. The fact that they have brought SEC on-board means that Bitwise asset management is already defying the logic behind the use of Cryptocurrencies.

While they do this in a bid to gain legitimacy and trust from the entire public, the fact remains that Bitwise asset management is also seeking to regularize Cryptocurrencies to appear in the same class as other investment assets. They’ve also integrated into their business model two other self-directed IRA custodians known as Kingdom Trust and Entrust which will be adding new incoming accounts. There is also rumors that they will be adding more custodians.

Bitwise Index Fund way of operation

They claim that funds are kept in 100% cold storage for security. Audits happen annually and purchased are made across several liquidity providers to ensure good execution, claims Bitwise Crypto Investment Fund.

The company claims that they are constantly evaluating available network opportunities in the blockchain which include staking, airdrops, hard folks, super and master nodes rewards etc.

Who are the guys behind Bitwise Crypto Investment fund?

They tell the investment community that the company was founded in 2017 by a team of guys who have a background in Facebook, Google, Wealthfront and in Military security.

I was able to confirm that the firm is associated with someone called Morgan Creek. This operation has gained massive media coverage including outlets like CNBC.

The core methods of operation include diversification, methodology and security of investor funds.

What returns can you expect from this Crypto fund index?

Bitwise Asset management offers 3 types of funds. These include Bitwise 10 private index fund, Bitwise 10 index and Bitcoin. The following screenshot shows the kind of returns which this firm claims to have generated for investors:

Bitwise asset investment returns

These result have allegedly been audited by Cohen and company. In the last 1 month, it is crystal clear that the fund incurred a loss. However, in the last 3 months, there was a profit and the highest returns were made on the Bitcoin Bull market. It stands at 88%. The Bitcoin fund appears to have performed better than the other two funds. Still, I think Bitcoin trading operations like TopEdgeFX provide better and consistent returns over time because a 25% monthly return is often assured.

Bitwise Asset Management fees

They are charging 2.5% fee which entails the following: management fee, custody charges for holding the fund’s assets charged by the custodian, and customary fees and expenses of the fund administrator and auditor.

Reasons you might consider investing elsewhere

First, if you are not a US citizen, Bitwise Asset investment won’t accept you. Secondly, if you can’t afford $25,000, the firm won’t take you in. Thirdly, there’s a good chance the SEC won’t approve their application or there may be delays. And of course all investors are looking for low-minimum deposit, less complex investment programs that offer assured returns such as this firm here.

Conclusion

I think this is headed in the right direction except that I am not sure why Bitwise Asset Investments has no customer reviews anywhere on the internet. The firm seems to have invested heavily on PR than on reviews and feedback from investors. We can only wait and see if this will go far as projected by the company.