The new portfolios will let eligible investors hold tokenised stocks in non-custodial wallets while following set allocations.
Photo Credit: Unsplash/Sajad Nori
Glider will automatically rebalance holdings when they deviate from the model allocation
Bitwise has launched three automated portfolios of Coinbase tokenised stocks available to qualifying investors outside the US through self-custody and rebalancing at a 0.15 percent methodology fee. According to Bitwise's August 25 announcement, Automated Token Portfolios (ATPs) by Bitwise will enable qualifying users to copy professionally managed stock portfolios into their wallets. Developed by Bitwise Investment Managers, these models operate on the newly introduced tokenised US stocks of Coinbase. Glider is an independent platform that makes trades and rebalances the portfolio after the user logs in. The first three portfolios will become available through Glider over the coming weeks.
As per the announcement, the access fee on Bitwise Methodology is 0.15 percent and does not cover any fees incurred from transactions or charges from Glider for using its platform. An example of one such option is the Bitwise Mag7X ATP, where there is equal allocation between Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta, and Tesla, along with privately owned SpaceX. Companies that will be included in the portfolio will hold equal-weighted positions in the Bitwise Robotics ATP.
The companies for AI exposure according to the Bitwise AI Leaders ATP are Nvidia, Microsoft, Alphabet, Meta, Amazon, SpaceX, Tesla, and SanDisk. These are some of the companies that Bitwise has recognised as leaders in the AI technology arena. Unlike a typical fund, an ATP will have an indicated allocation, and not a pool of money managed by the asset manager as in the traditional fund. Glider will do the necessary trading and rebalance the wallet in case the holdings deviate from the Bitwise allocation.
In this structure, the investors maintain the tokenised stocks in non-custodial wallets from start to finish. Bitwise does not own any assets, make trading decisions, or have control over an investor's account. “For over a century, getting a professional model meant handing your assets to a fund. ATPs mean you can keep the assets in your own wallet, and the model comes to you,” Bitwise Chief Investment Officer Matt Hougan said.
Despite the tracking companies that are listed on US stock exchanges, the ATPs and the Coinbase securities are available only to non-US eligible persons. Bitwise restricts access to the ATPs based on Regulation S of the Securities Act of 1933. The company stated that the products had not been registered for sale to people in the US. The registration of Bitwise as an investment adviser in the US is limited only to its advisory services and not to the ATP models.
Recently, India also announced that the government is looking to launch its first tokenised corporate bonds in the form of an issue from REC worth less than Rs. 5 billion, using the digital rupee for settlement through blockchain technology. The state-backed power financing company REC will issue these bonds under an experiment being conducted jointly with the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI).
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