The Bitwise 10 Crypto Index Fund (BITW) offers investors a streamlined way to gain exposure to the top digital assets in the cryptocurrency market. As one of the earliest crypto index funds, BITW provides diversified access to large-cap cryptocurrencies through a single, SEC-registered security traded on the OTCQX market. This makes it an appealing option for both retail and institutional investors seeking regulated exposure to the rapidly evolving crypto ecosystem.
With an estimated AUM of $1.449 billion as of July 3, 2025, BITW continues to stand out in the digital asset investment space due to its transparent structure, clear methodology, and consistent performance tracking against leading crypto benchmarks.
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Understanding BITW: Market Data & Performance Snapshot
As of early July 2025, key metrics for the Bitwise 10 Crypto Index Fund include:
- Market Price: $67.96
- Intraday NAV: $71.59
- Previous Day NAV: $71.61
- Price Change Today: +$0.02 (+0.03%)
These figures reflect real-time trading dynamics between the fund’s net asset value (NAV) and its secondary market price. The slight discount between market price and NAV suggests investor sentiment may be influenced by broader macroeconomic conditions or short-term crypto volatility.
The fund does not currently offer a redemption program, meaning shares are bought and sold exclusively in the secondary market via OTCQX under the ticker BITW.
Historical Returns: How Has BITW Performed?
Performance data as of July 3, 2025, reveals strong growth across multiple time horizons:
| Period | BITW (NAV) | Secondary Market (OTCQX) | Bitcoin |
|---|---|---|---|
| 1 Month | 1.7% | 10.2% | 3.3% |
| 3 Months | 32.1% | 40.1% | 34.0% |
| YTD | 6.1% | 12.6% | 17.6% |
| 12 Months | 54.8% | 98.2% | 84.3% |
| Since Inception (Nov 2017) | 615.9% | N/A | 1231.7% |
| Since OTCQX Listing (Dec 2020) | 330.1% | 126.9% | 499.2% |
Past performance does not guarantee future results.
While Bitcoin has historically outperformed both the index and the fund, BITW's diversified composition helps reduce concentration risk—offering more balanced exposure than holding BTC alone.
It’s important to note that fund returns are net of a 2.5% annual fee, which covers management, custody (via Coinbase Custody), administration, and auditing costs. Although this expense ratio is higher than traditional ETFs, it reflects the operational complexities of securely managing digital assets.
Fund Holdings: Diversified Exposure to Top Cryptocurrencies
As of July 3, 2025, the Bitwise 10 Crypto Index Fund holds the following assets, weighted by market capitalization and subject to monthly rebalancing:
- Bitcoin (BTC): 78.8%
- Ethereum (ETH): 11.2%
- XRP: 4.9%
- Solana (SOL): 2.9%
- Cardano (ADA): 0.8%
- Sui (SUI): 0.4%
- Chainlink (LINK): 0.3%
- Avalanche (AVAX): 0.3%
- Litecoin (LTC): 0.2%
- Polkadot (DOT): 0.2%
This concentration in BTC and ETH reflects their dominant positions in the crypto market cap landscape. However, the inclusion of high-potential layer-1 blockchains like Solana, Avalanche, and Sui adds growth diversification beyond the two largest players.
All holdings are evaluated based on strict eligibility criteria including liquidity, trading volume, security practices, regulatory compliance, and network decentralization—ensuring only investable, resilient assets are included.
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Fund Structure & Key Details
| Attribute | Information |
|---|---|
| Benchmark Index | Bitwise 10 Large Cap Crypto Index |
| Fund Type | Crypto Index Fund |
| Inception Date | November 22, 2017 |
| Shares Outstanding | 20,241,947 |
| Tax Reporting | Schedule K-1 |
| Sponsor | Bitwise Investment Advisers, LLC |
| Custodian | Coinbase Custody Trust Company, LLC |
| Administrator | Theorem Fund Services |
| Transfer Agent | American Stock Transfer & Trust Company, LLC |
The use of Schedule K-1 for tax reporting may present complexities for some U.S.-based investors compared to standard Form 1099 issued by most ETFs. Investors should consult a tax professional when evaluating BITW for inclusion in taxable accounts.
Additionally, while shares are registered with the SEC under Section 12(g) of the Securities Exchange Act of 1934, they are not registered under the Securities Act of 1933 or the Investment Company Act of 1940—highlighting its unique regulatory positioning within the evolving crypto financial framework.
Methodology Behind the Index
The Bitwise 10 Large Cap Crypto Index follows a transparent, rules-based approach designed for replicability and long-term investability. Key elements include:
- Monthly Rebalancing: Ensures weights reflect current market conditions.
- Eligibility Filters: Assets must meet minimum thresholds for liquidity, exchange availability, security audits, and absence from sanctions lists.
- Continuous Monitoring: A dedicated team monitors for sudden events such as exchange hacks, regulatory actions, or consensus failures that could impact asset integrity.
This proactive oversight enhances investor confidence by minimizing exposure to compromised or illiquid tokens.
Governance & Expert Oversight
The index is guided by an experienced Index Advisory Board, composed of industry veterans:
- Spencer Bogart, Managing Director and Head of Research at Blockchain Capital — brings deep expertise in blockchain equity research.
- Srikant Dash, former Global Head of Index Business at Bloomberg LP and S&P — contributes decades of index design experience.
- Matt Hougan, Chief Investment Officer at Bitwise — a recognized leader in ETF innovation and crypto finance.
Their combined insights help ensure the index remains aligned with both market evolution and investor needs.
Frequently Asked Questions (FAQ)
Q: What is the Bitwise 10 Crypto Index Fund?
A: It’s a publicly traded fund offering diversified exposure to the top 10 large-cap cryptocurrencies, rebalanced monthly and traded over-the-counter under ticker BITW.
Q: How is BITW different from a crypto ETF?
A: Unlike spot Bitcoin ETFs approved in the U.S., BITW is structured as a grantor trust listed on OTCQX and does not currently have a redemption mechanism. It also uses Schedule K-1 for tax reporting.
Q: Can I redeem my shares directly with the fund?
A: No. The fund does not operate a redemption program; shares must be sold on the secondary market via brokerages.
Q: Why does BITW use Schedule K-1 instead of Form 1099?
A: Due to its structure as a grantor trust, BITW issues K-1 forms similar to partnerships or MLPs, which may complicate tax filing for some investors.
Q: Is BITW regulated?
A: Yes. Shares are registered with the SEC under Section 12(g) of the Securities Exchange Act of 1934, though not under other major securities laws.
Q: How often is the portfolio updated?
A: Holdings are rebalanced monthly based on market data and eligibility criteria, with updates typically reflected within days after month-end.
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The Bitwise 10 Crypto Index Fund represents a significant milestone in institutional crypto adoption—offering regulated, transparent access to digital assets without requiring direct custody. While it comes with nuances like K-1 taxation and premium/discount fluctuations relative to NAV, its proven track record and rigorous methodology make it a compelling choice for long-term investors navigating the decentralized economy.
Whether you're new to crypto or refining an advanced portfolio strategy, understanding vehicles like BITW is essential in today’s evolving financial landscape.
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