Bitwise launches NFT-tracking index fund for accredited investors

Bitwise has launched an index fund tracking the 10 largest non-fungible token collections.

The Bitwise Blue-Chip NFT Index Fund will purchase and hold in custody NFTs from CryptoPunks, Bored Ape Yacht Club, Mutant Ape Yacht Club, Autoglyphs, Fidenza, VeeFriends, CyberKongz Genesis, Cool Cats, Meebits and Chromie Squiggle. These represent the top 10 NFT collections based on market capitalization using floor prices, which the fund plans to rebalance quarterly.

Bitwise CIO Matt Hougan said the fund will focus its holdings on art and collectibles, meaning NFTs like music rights, virtual land and game items won't be included. It will also exclude NFTs from collections with fewer than 100 items since Bitwise views those assets as too illiquid.

Art and collectibles drove volume early in the NFT space, but that trend has leveled off since September. Gaming NFTs have seen a significant pick up in recent months with the explosion of assets like Loot and the expansion of the blockchain gaming space.

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