Bitwise Active Management, a crypto index fund manager, has enhanced the firm’s capabilities with the creation of Bitwise’s actively managed crypto strategies. The expansion into active strategies marks an important milestone for the company.
Bitwise’s decision to add active strategies is driven by rapidly growing institutional demand for liquidity crypto strategies. The company’s active team will be led by a new team of experts, led by Jeffrey ParkCFA.
Park, who brings nearly a decade of experience as a crypto investor, was most recently a partner at Alternative Manager Corbin Capital, where he led the company’s early investments in digital assets. Prior to that, Park held positions at Harvard Management Society and Morgan Stanleyspecializing in fixed income securities and exotic derivatives.
Joining Park is vincent Molin, who will lead operational due diligence for Bitwise’s active solutions. Molino has led and supported due diligence efforts for over a decade at institutions such as North Trust, Mercierand EnTrustPermal. In addition, Denny Peng joined the Multi-Strategy Hedge Fund Complex team Millennium Management and will serve as risk manager.
The new Bitwise team will initially focus on multi-strategy absolute return solutions that seek to capitalize on market inefficiencies and emphasize low volatility and sound risk management.
“For the past half-decade, our sole focus at Bitwise has been to provide investors with innovative ways to access emerging opportunities in crypto,” said Bitwise CEO, Hunter Horsley. “Adding Active Strategies to our services is a huge step forward in our ability to do so. I am proud to say that we have assembled one of the most talented teams in the country to craft our new Active Strategies, in leveraging the platform and experience we have developed at Bitwise.
The announcement comes at a time when institutions are expressing greater interest in digital assets, but face increasing complexity in evaluating the space. The number of crypto-focused funds has grown from 31 in 2016 to over 850 today, increasing the need for active strategies that can properly analyze and monitor the investment universe of institutions.
“A new dimension of opportunity now presents itself as the structure of the liquid crypto market has matured,” said active portfolio manager Jeffrey Park. “We believe that market-neutral, yield, arbitrage and quantitative strategies can be combined with best-in-class, buy-focused approaches to create unique absolute return opportunities.
“At Bitwise, we have the industry’s deepest group of experts in crypto research, operational due diligence, custody, trading, risk management and regulation to help institutional investors get through this. border.”
“Crypto has historically moved in four-year cycles, with three years up and one year down,” said matt hougan, chief investment officer at Bitwise. “Amid the consolidation of this cycle, many investors have quietly done their job and now see an opportunity.
“At Bitwise, we are seeing better and stronger tailwinds than ever before. We are excited to add active strategies to our wide range of index strategies to enable investors to access opportunities in crypto.
“Our aspiration remains simple: for Bitwise to be the leading specialist trusted by investment professionals as a crypto partner,” added Bitwise CEO Horsley.