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Bitwise Launches $9B Tokenized Stock Portfolios With Self-Custody and Auto-Rebalancing

CryptoNinjas

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Key Takeaways:

  • Bitwise unveils ATPs for tokenized U.S. stock portfolios.
  • Bitwise is backed by $9B in client assets as it expands its onchain investing.
  • Three portfolios are focused on AI, robotics and the Magnificent 7 plus SpaceX.

Bitwise Asset Management is taking its model-portfolio strategy directly into crypto wallets. The firm has launched Automated Token Portfolios (ATPs), combining Coinbase’s tokenized stocks with Glider’s automated rebalancing technology.

The products are available only to eligible non-U.S. persons in supported jurisdictions outside the United States.

bitwise-atps

Bitwise Brings Model Portfolios Onchain

ATPs provide investors with an alternative to traditional pooled funds to track the performance of a specific stock strategy.

Bitwise creates the portfolio models and users conduct trades in their non-custodial wallets. Bitwise Glider adjusts holdings automatically and implements for you based on the Bitwise published holdings.

That structure creates a clear split between portfolio design, execution and custody. Bitwise does not hold users’ assets, initiate transactions or control individual portfolios.

The methodology access fee is 0.15%, excluding trading costs and any separate fees charged by Glider.

Read More: Bitwise Hyperliquid ETF Targets $11B HYPE Market

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Three Themes Lead the Launch

Bitwise is beginning with three ATPs catering to each theme:

Mag7X ATP is all about eight massive companies: Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta, Tesla and SpaceX are all represented equally.

Tesla, Nvidia, Amazon are among the holdings at Robotics ATP, which targets businesses in the robotics and autonomous systems space.

AI Leaders ATP focuses on key companies that are leaders in artificial intelligence like Nvidia, Microsoft, Alphabet/Meta, Amazon, SpaceX, Tesla, and Sandisk.

There are no models or personalized investment advice. Bitwise claims that the portfolios offer investors exposure to emerging investment themes quickly, before the availability of a new ETF or pooled entity.

Coinbase Supplies the Tokenized Stocks

The underlying assets are tokenized U.S. stocks, which Coinbase recently opened for eligible non-U.S. users.

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Coinbase says its tokenized stocks represent underlying equity interests and are backed 1:1 by shares, subject to the relevant product terms and regulatory framework. Bitwise says, however, it has not independently verified Coinbase’s representations with respect to backing, shareholder rights or redemption.

Bitwise’s disclosures state the tokenized stocks are issued by a Coinbase entity licensed in the Abu Dhabi Global Market (ADGM).

This establishes a three-part solution: Coinbase offers the tokenized stock exposure, Bitwise publishes the portfolio methodology and automated implementation is handled by Glider.

Self-Custody Opens a DeFi Angle

One key distinction between traditional funds is where the assets are held. ATPs do not move the tokenized stocks into a pooled entity operated by a fund manager.

According to Bitwise, it might enable any compatible tokens to be utilized in DeFi for lending or borrowing, though this is contingent on the availability of appropriate protocols and also come with hefty perils, such as liquidation.

Another advantage of the model is that investors have a direct role when deciding on the time to pull out of the investment. Meanwhile, users are always accountable for their wallets and actions taken with the Glider platform.

But for the time being, all the products are barred from sale to U.S. persons under Regulation S of the Securities Act of 1933. The SEC’s registration of Bitwise doesn’t indicate approval or endorsement of the ATPs, Bitwise also emphasizes.

Unlike other launches, the new launch is bringing traditional portfolio building to blockchain and preserves the original stocks on users’ wallets.

Read More: Bitwise Acquires $2.2B Staking Giant Chorus One, Expands to 30+ PoS Chains

The post Bitwise Launches $9B Tokenized Stock Portfolios With Self-Custody and Auto-Rebalancing appeared first on CryptoNinjas.


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