Bitwise Asset Management, the creator of cryptocurrency index fund HOLD 10, announced today that the fund now supports investment from self-directed individual retirement accounts (IRAs). Investors who meet basic guidelines for accreditation may invest in the fund immediately.
“We have a strong belief in the long-term potential for cryptoassets, and in many ways, retirement accounts are a perfect place for people to invest in that potential and on that timescale,” said Hunter Horsley, CEO, Bitwise Asset Management. “Investing through an IRA has been a common request, and we’re glad to be able to support it.”
Bitwise is currently integrated with two major self-directed IRA custodians — Kingdom Trust and Entrust — to handle incoming accounts. It is working to add additional custodians.
“The idea of delivering cryptoassets in an IRA has been around for a while, but existing vehicles come with fees as high as 15%, limited diversification, or both,” said Horsley. “The HOLD 10 offers low-cost, convenient, diversified, and managed access to the cryptocurrency market.”
The HOLD 10 Private Index Fund is a market-cap-weighted fund of the 10 largest cryptocurrencies, rebalanced monthly. Assets are kept in 100% cold storage and are audited annually. The fund launched in late 2017 and is available to accredited investors, which include individuals with more than $200,000 in annual income ($300,000 for couples) or more than $1 million in net assets. The fund charges a 2.5% annual management fee, with no hidden costs or performance fees.
“As the cryptocurrency market matures, the data increasingly support the idea that cryptoassets may offer the possibility of strong returns while providing low correlations to traditional asset classes, including equities, bonds, and commodities,” said Matt Hougan, global head of research for Bitwise. “That’s a relatively rare combination.”
“There is also reason to believe that long-term returns may be negatively correlated to inflation and weakness in the U.S. dollar and other major currencies,” added Hougan. “As such, a small allocation to cryptocurrencies in a diversified portfolio may make sense for the right kind of investor.”
Bitwise Asset Management is backed by leading institutional and individual investors including Khosla Ventures, General Catalyst, Blockchain Capital, Naval Ravikant, David Sacks, Elad Gil, Adam Nash, Adam Ludwin, Suna Said, Avichal Garg, and others.