Bitwise Funds Trust - Bitwise Web3 ETF (BWEB)

Overview

The Bitwise Web3 ETF (BWEB) seeks to track the Bitwise Web3 Equities Index, providing exposure to companies positioned to benefit from the growth of the Web3 ecosystem, including cryptocurrency, blockchain technology, and decentralized finance.

Reputation and Reliability

Bitwise is a well-known asset manager specializing in cryptocurrency and blockchain-related investments, with a good reputation for research and expertise in the digital asset space.

Management Expertise

Bitwise has a team of experts dedicated to understanding and investing in the Web3 ecosystem, demonstrating significant knowledge in this relatively new and complex field.

Goal

To provide investment results that correspond to the price and yield performance of the Bitwise Web3 Equities Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Bitwise Web3 Equities Index, a rules-based index designed to represent companies that are actively involved in the Web3 economy.

Composition The ETF primarily holds stocks of companies involved in cryptocurrency, blockchain technology, decentralized finance (DeFi), and other Web3-related areas.

Market Share: Market share data is difficult to ascertain precisely due to the evolving nature of the Web3 ETF landscape.

Total Net Assets (AUM): 6790000

Key Competitors

• FIDELITY CRYPTO INDUSTRY AND DIGITAL PAYMENTS ETF (FDIG)
• VANECK DIGITAL TRANSFORMATION ETF (DAPP)
• GLOBAL X BLOCKCHAIN ETF (BKCH)

Competitive Landscape

The Web3 ETF market is competitive with several funds vying for investor capital. BWEB faces competition from established players like FDIG and DAPP. Its smaller AUM and potential liquidity concerns may be disadvantages, while its focused index tracking could be an advantage for investors seeking pure Web3 exposure. Competitors generally have larger AUMs and more established trading volumes.

Historical Performance: Historical financial performance is not readily available due to relative newness. However, as of today, July 12th 2024, YTD performance is [28.74]%

Benchmark Comparison: A proper benchmark comparison can only be performed with more performance history. In theory, BWEB should be nearly identical to its tracking Index.

Expense Ratio: 0.85

Average Trading Volume

The average trading volume is relatively low, which may affect ease of trade execution.

Bid-Ask Spread

The bid-ask spread could potentially be wider than more liquid ETFs, which might increase transaction costs.

Market Environment Factors

Economic indicators, sector growth prospects, current market conditions, and regulatory developments in the cryptocurrency and blockchain space significantly impact the performance of BWEB.

Growth Trajectory

Growth trends depend on the adoption and development of Web3 technologies. Changes to the index's composition could also reflect shifting opportunities and market dynamics.

Competitive Edge

Bitwise Funds Trust - Bitwise Web3 ETFu2019s advantage is its narrow focus on the Web3 ecosystem and the expertise of Bitwise in cryptocurrency and blockchain investments. The ETF benefits from Bitwise's deep understanding of digital assets and the evolving Web3 landscape. This expertise could potentially lead to better security selection and risk management. However, this focus can also make it more sensitive to market fluctuations within the Web3 sector. Their early entry to the cryptocurrency and blockchain space provides potential benefits in terms of brand recognition and access to information.

Volatility

BWEB's volatility is likely to be high due to the inherent volatility of the Web3 sector and cryptocurrency markets.

Market Risk

Specific risks include regulatory uncertainty, technological advancements rendering certain projects obsolete, and market sentiment shifts towards or away from Web3 technologies.

Ideal Investor Profile

Ideal investors are those with a high risk tolerance, a strong belief in the long-term potential of Web3 technologies, and a desire for focused exposure to this sector.

Market Risk

BWEB is best suited for long-term investors who understand the risks associated with the Web3 space, rather than short-term traders or risk-averse investors.

The Bitwise Web3 ETF (BWEB) provides targeted exposure to companies positioned to benefit from the growth of the Web3 ecosystem. The ETF's performance is closely tied to the success of Web3 technologies, so its suitability depends on investor's risk tolerance. Investors should carefully consider the risks associated with Web3 technologies and their overall portfolio goals. Due to the relative newness of the fund, and the volatile sector it operates in, its market position is low.

Data Sources:

• Bitwise Asset Management
• ETF.com
• Yahoo Finance

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and financial goals. Past performance is not indicative of future results. Data is based on information available as of July 12, 2024, and may be subject to change.