Bitwise Asset Management, a leading crypto fund manager has recently announced that its 10 Crypto Index Fund is trading at a 369% premium. It is revealed that the fund is trading at a much higher premium than all the underlying assets like Bitcoin, Ethereum, and others.
According to the recent report by Bloomberg, all the institutional investors, retail traders, and hedge funds prefer paying the premium to access the fund. They are not in favor of buying the underlying assets to have access to the fund.
The Crypto Index Fund got listed on the OTCQX Best Market on December 09, 2020. Within just three days from the listing, it can trade more than $67 million. Due to such huge volumes, it has managed to become the highest volume publicly traded crypto asset fund and breaks all previous records.
Before the 10 Crypto Index Fund, it was Grayscale Ethereum Trust that set a record. However, it’s the trading volume in the first three days was only $9 million which is much less than that of the Bitwise 10 fund. When it comes to the largest crypto fund, Grayscale is at the top as it is having $13.7 billion in assets under management.
It is revealed that Cardano, Polkadot, and Binance Coin are not there in the 10 Crypto Index Fund, despite being in the top ten list. Currently, the fund is having a net asset value of $18.55 and the market price is at $139. Kyle Samani, co-founder and managing partner at Multicoin Capital, has said that people are not aware of what they are buying. He said:
“I don’t think they can justify the premium, I just think they don’t know what they’re buying. That’s not justifiable, that’s just ignorance.”
According to him, the buying of the premium is more like ignorance and it is not justifiable at all.