Hassan Maishera
TL;DR
-
Bitwise has launched Automated Token Portfolios for eligible non-US investors in supported jurisdictions.
-
The portfolios automatically replicate and rebalance professional investment models using Coinbase’s tokenized US stocks.
-
Investors maintain custody of the assets in their own non-custodial wallets.
-
Initial investment themes include the Magnificent Seven plus SpaceX, robotics, and artificial intelligence companies.
Bitwise has launched Automated Token Portfolios, a new product that allows eligible investors outside the United States to follow professionally designed portfolios of Coinbase’s tokenized US stocks while keeping the assets in their own wallets.
The rules-based model portfolios, known as ATPs, are designed by Bitwise Investment Manager and automatically replicated and rebalanced for participating users.
Coinbase and Glider Power Bitwise’s Token Portfolios
Automated Token Portfolios use Coinbase’s tokenized stocks as their underlying assets, while onchain investment platform Glider provides the infrastructure required to implement the strategies.
The initial portfolios will focus on prominent investment themes, including the Magnificent Seven technology companies plus SpaceX, robotics businesses and leading artificial intelligence companies.
Bitwise will charge a 0.15% methodology access fee. This amount does not include trading expenses or additional platform fees that investors may incur.
Unlike conventional investment funds, ATP users do not have to transfer their assets into a pooled vehicle or hand control to a fund manager.
The tokenized stocks remain in each investor’s non-custodial wallet, giving users direct control over their holdings while the selected model determines portfolio allocation and rebalancing.
Bitwise, which manages approximately $9 billion in crypto assets, said the structure brings professionally managed investment strategies directly to investors’ wallets.
ATPs Could Give Investors Access to DeFi Services
Because the assets remain in onchain wallets, investors may be able to use the tokenized stocks across compatible decentralized finance protocols.
Potential applications include lending the assets to earn returns or using them as collateral for loans. However, these activities could expose users to additional risks, including smart-contract vulnerabilities, liquidation events and counterparty risks.
The availability of such services will also depend on the technical compatibility of the tokens and the regulations applying in each jurisdiction.
Bitwise Chief Investment Officer Matt Hougan said professional investment models have historically required investors to hand their assets to a fund.
Automated Token Portfolios reverse that arrangement by allowing investors to retain custody while bringing the model strategy to their wallets.
According to Hougan, ATPs could provide faster and more precise access to thematic investment opportunities than many traditional fund structures.
Glider co-founder and CEO Brian Huang said onchain infrastructure could give international investors access to established institutional investment managers while introducing capabilities that are unavailable through conventional brokerage accounts.
Bitwise Expands its Onchain Investment Products
The ATP launch is the latest step in Bitwise’s expansion into model portfolios and tokenized investment products.
In January, the asset manager partnered with Morpho to introduce curated, non-custodial onchain vaults. These products were designed to expand access to managed yield opportunities without requiring investors to relinquish custody.
Bitwise followed that launch in February with seven professionally constructed cryptocurrency portfolios for financial advisers. The strategies included systematic monitoring and rebalancing.
During the summer, the company also made its crypto model portfolios available to retail investors through Parrot’s platform.
