Bitwise to Launch Automated Portfolios of Tokenized US Stocks Tied to Magnificent Seven, AI
Summary
- Bitwise plans to launch Automated Token Portfolios (ATP), which manage baskets of tokenized US stocks.
- Investors will be able to keep assets in non-custodial wallets while investing in themes including the Magnificent Seven, artificial intelligence (AI) and robotics-related stocks.
- The product carries a 0.15% fee for using the management model, and the tokenized asset market has grown to about $38 billion.
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Bitwise is preparing to launch a portfolio product that bundles multiple tokenized US stocks and manages them automatically. The offering will allow investors to keep assets in their own wallets rather than place them in a fund while gaining exposure to themes such as the Magnificent Seven and artificial intelligence.
Bloomberg reported on Aug. 25 that Bitwise plans to offer the product, called Automated Token Portfolios, or ATP, to eligible investors outside the US. Bitwise currently manages about $9 billion in client assets.
ATP will use tokenized US stocks provided by Coinbase. A system built by technology firm Glider will automatically rebalance investors' holdings to match target weightings set by Bitwise. The initial lineup will include portfolios focused on the Magnificent Seven, AI and robotics-related stocks.
Unlike traditional funds, the product does not pool investor assets into a single investment vehicle. The tokenized stocks remain in non-custodial wallets controlled by investors, while only portfolio composition and weightings are adjusted automatically.
"For more than 100 years, investors have had to place assets in a fund to access professional investment models," Bitwise Chief Investment Officer Matt Hougan said. "With ATP, they can apply those models while keeping assets in their own wallets."
The product is set to launch in the coming weeks. The fee for using the management model is 0.15%.
Separately, the shift to move traditional financial assets such as stocks and bonds onto blockchains as tokens is accelerating. According to RWA.xyz, the tokenized asset market has expanded to about $38 billion.
