Today, we’re breaking down Bitwise. Founded in 2017, Bitwise is known for managing the world’s largest crypto index funds with over $1.2bn in assets under management. In this breakdown, we cover the value proposition of Bitwise, how the business compares to traditional asset managers, and why there is a lack of competition today for crypto indexing.
To help break down Bitwise, I am joined by co-founder Hunter Horsley. Hunter shares his journey with the business, key lessons launching a business within the crypto space, and some interesting data points around investor adoption of crypto. I hope you enjoy this breakdown of Bitwise.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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Show Notes
[00:02:14] - [First question] - The history of Bitwise and what they do
[00:04:29] - Some of the structures of their available funds
[00:05:47] - Why use a fund oriented structure compared to something like Coinbase
[00:07:09] - The governing investment and management philosophy of Bitwise
[00:09:07] - Are the yields distributed back to the customer?
[00:10:33] - Keys steps in a transaction chain of $1 invested in the Bitwise 10 fund
[00:12:43] - Overview of the OTC system and their trading volume currently
[00:14:12] - Cold storage, security, and his thoughts on self-custody
[00:16:12] - His thoughts on valuation and what makes a particular project worth holding
[00:19:13] - Managing the business below the topline and whether it’s similar to other asset management companies
[00:20:52] - Their sales, core customers, and go-to-market strategy
[00:22:43] - Ways advisors are using crypto and working in exposure for their clients
[00:25:25] - Lessons learned about selling to and acquiring RIAs
[00:28:40] - Being an educational company with index funds attached
[00:29:54] - Why are there seemingly no Bitwise competitors
[00:31:59] - Some crypto assets that might become index worthy in the future
[00:35:19] - Driving forces behind who will win and lose in this space
[00:36:54] - A major lesson learned while being an operator in the crypto market
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