Daffy Embraces Bitwise Funds for Cryptocurrency Exposure, Shifts Away from Vanguard
In a pivotal move within the investment sector, Daffy, a renowned Donor Advised Fund platform, has transitioned from incorporating Vanguard funds in its investment strategy to welcoming Bitwise funds. This change underscores a significant pivot towards cryptocurrency exposure, particularly through the inclusion of the BITB Bitcoin ETF.
Hunter Horsley, CEO of Bitwise, applauded Daffy's strategic shift, spotlighting the burgeoning interest in crypto assets among the investment community. Horsley underscored the necessity of integrating crypto exposure amidst the evolving financial terrain, tagging it as a critical development for investors nationwide.
Daffy’s investment portfolio diversification now spans two principal avenues for cryptocurrency exposure. The Crypto-Diversified Conservative portfolio earmarks a 5% allocation towards the Bitwise 10 Crypto Index Fund (BITW), while the Crypto-Diversified Aggressive portfolio elevates this with a 10% allocation to the Bitwise Bitcoin ETF (BITB). This deliberate positioning grants the Bitwise Bitcoin ETF a competitive edge in the market.
Further underlining Bitwise’s milestones, Horsley celebrated the approval of the Bitwise Bitcoin ETF (BITB) by a significant US wealth platform. This endorsement paves the way for financial advisors to engage in dialogues regarding Bitcoin ETFs with their clientele, marking a noteworthy advancement for the Bitwise Bitcoin ETF.
Amidst the landscape, Spot Bitcoin ETFs have witnessed a resurgence in net inflows, following a period marked by significant withdrawals. Grayscale Bitcoin ETF (GBTC), in particular, registered its minimal outflow since March 12. The shifting tides of investment flows, from GBTC, characterized by steep management fees, towards Bitcoin ETFs presented by industry giants like BlackRock and Fidelity, highlight the competitive environment spurred by more affordable fees. Remarkably, BlackRock’s IBIT Bitcoin ETF has observed substantial inflows, hinting at its potential to surpass GBTC in terms of total assets under management (AUM).
This strategic transformation by Daffy, integrating Bitwise funds for cryptocurrency exposure, reflects a broader acceptance and keen interest in digital assets within the investment realm.
Analyst comment
Positive news: Daffy’s embrace of Bitwise funds for cryptocurrency exposure shows a growing interest in digital assets. This strategic shift positions the Bitwise Bitcoin ETF competitively in the market. The approval of the Bitwise Bitcoin ETF by a US wealth platform further advances its adoption. Additionally, the resurgence of net inflows into Spot Bitcoin ETFs, particularly BlackRock’s IBIT Bitcoin ETF, indicates a shift towards more affordable fees and potential surpassing of GBTC in total AUM.
As an analyst, this move is likely to drive increased investment in Bitwise funds and the crypto market as a whole. Investors are recognizing the potential of digital assets and seeking exposure to them through well-established platforms like Daffy. This trend may lead to further innovation and adoption of cryptocurrency investment products in the market.
