Bitwise (OTCMKTS: BITW) has launched the first non-fungible token (NFT) index fund to expose investors to the NFT sector. The fund manager has stated that the Blue-Chip will help people interested in NFTs with little time to take part in auctions.
Bitwise based its decision on crypto’s success
Bitwise currently hosts ten of the most valuable NFTs, including Fidenza, Bored Apes, and CryptoPunks. These NFT collections have a collective value of $6 billion. Bitwise weighs these collectively based on market value to simplify price discovery and liquidity.
Bitwise explains that it started the fund after the NFT trading reached $10 billion in the third quarter of 2021. NFTs, which served as digital proofs of ownership, has completely revolutionized the art world. Many art pieces have sold for millions.
The fund also has low minimums allowing the investors opportunities to share ownership for art that they could not have otherwise bought. NFTs are generally expensive and time-consuming. Furthermore, sourcing and buying NFTs is complex.
According to the CEO of Bitwise, Hunter Horsely, NFTs have contributed significantly to the growth of the cryptocurrency sector. Moreover, NFTs are slowly changing how people think of property rights. Hunter also believes in helping investors take part in the growth of crypto through the fund.
Matt Hougan, the CIO of Bitwise, adds that investors should know the risks of investing in NFTs. He points out that the market is still in its infancy. In addition, NFTs are highly volatile and have a few custody challenges.
NFTs have provided a medium for art
Hougan states that NFTs have provided a new medium for art which is rare. NFTs have become the first digital media for owing collectibles and art. Moreover, they can use in the digital world, can have value and meaning in the digital world. This combination presents an excellent opportunity for investors.
This find is not the first crypto fund that Bitwise has launched. It has also launched the ex Bitcoin Index Fund and the Bitwise DeFi Index Fund. The new fund is available to investors who pay $25,000 for a minimum investment.
The Blue-Chip NFT Index Fund will enable investors to put funds in major art collections and NFTs.