Bitwise Asset Management, which oversees $15 billion in client assets, has introduced a new non-custodial decentralized finance vault. The product was developed by the firm's onchain strategy team and is now live for investors.
How the Vault Works
The vault is non-custodial, meaning users retain full control of their funds at all times. Unlike traditional crypto funds where a custodian holds the assets, this structure lets investors interact directly with DeFi protocols through Bitwise's smart contract infrastructure. The firm says the vault is designed to streamline access to yield-generating strategies while eliminating counterparty risk associated with custodial arrangements.
Bitwise already runs several crypto investment products, including spot Bitcoin and Ethereum ETFs. The new vault expands its lineup into the DeFi sector, where users can earn returns from lending, liquidity provision, and other onchain activities.
The launch is part of a broader push into decentralized finance that has accelerated in recent months. Bitwise's onchain strategy team, formed earlier this year, has been building out infrastructure to bridge traditional asset management with DeFi. The vault is their first publicly available product.
With $15 billion in assets under management, Bitwise is one of the larger crypto-focused asset managers. The move into non-custodial DeFi vaults signals that the firm sees growing demand from institutional and accredited investors who want exposure to DeFi yields without giving up self-custody.
Bitwise hasn't disclosed specific yield targets or which protocols the vault will use initially. The company said it plans to iterate on the vault's strategy based on market conditions and user feedback. For now, the vault is open to qualified investors through Bitwise's platform.
The launch comes as more traditional finance firms experiment with DeFi. BlackRock, Fidelity, and others have tokenized funds or invested in blockchain infrastructure. Bitwise's non-custodial vault takes a different approach by letting users hold their own keys while still benefiting from the firm's research and risk management.
The vault is available now. Bitwise says it will provide updates on performance and strategy adjustments as the product develops.
