Bitwise Asset Management rolled out its first tokenized fund this week, a $259 million vehicle that holds XRP alongside Bitcoin and Ether. The fund is built around a market-neutral strategy, a twist on the firm's usual spot-only products and a signal that institutional demand for structured crypto exposure is broadening.
First tokenized fund
The fund is Bitwise's debut in the tokenized space — a structure that represents shares as blockchain-based tokens, potentially enabling round-the-clock settlement and more flexible trading. At $259 million, it's one of the larger tokenized funds to hit the market this year, though Bitwise hasn't disclosed how much of that is seed capital versus new inflows.
XRP makes the cut
Bitwise's decision to include XRP is notable. The token has faced years of regulatory uncertainty in the U.S., but the firm's CEO, Hunter Horsley, commented on its inclusion, noting that XRP fits the fund's risk-managed framework. By adding it to a basket anchored by bitcoin and ether, Bitwise is betting that the asset's role in cross-border payments and DeFi can deliver returns that complement the larger cryptocurrencies.
The strategy
Market-neutral strategies aim to strip out broad market direction — they pair long positions with short hedges to profit from relative price moves rather than outright bull or bear bets. Bitwise hasn't detailed the exact hedging instruments, but the approach is designed to appeal to institutions that want crypto exposure without taking on the 50%-plus drawdowns that spot bitcoin has seen in past cycles.
The fund is live now. Bitwise hasn't said whether it plans to expand the tokenized lineup to other assets, but with XRP now in the mix, the door is open.
