Crypto asset manager Bitwise is making its first foray into the fast-growing tokenization market. The company reached an agreement to acquire the crypto carry fund managed by Superstate. With this move, Bitwise aims to gain a more effective position in the blockchain-based fund market.
Transfer process begins in Superstate fund
Bitwise will undertake the investment management of the Superstate Crypto Carry Fund, currently known by its USCC code, as of June 1. According to the agreement, the name of the fund will be changed to Bitwise Crypto Carry Fund, but the fund’s blockchain infrastructure will continue to run on Superstate.
USCC manages more than $267 million in assets and offers qualified investors the opportunity to invest with a crypto “cash-and-carry” strategy. The aim of this strategy is to make a profit from the difference between spot prices and futures contracts. Since futures prices are generally more expensive than spot transactions, especially during rising periods, the fund benefits from this advantage.
Features of the fund and its innovations
More than $100 million in assets in the USCC fund are used as collateral on decentralized finance (DeFi) platforms such as Aave and Kamino. Bitwise’s move is seen as part of its effort to further diversify its $11 billion asset portfolio, including ETFs and private funds under management, and strengthen its position in the tokenization space.
Tokenization offers investors the opportunity to hold ownership tokens within the fund that run on the blockchain. With this system, investors can carry out transactions 24/7 and delays in transfers and settlement processes are reduced. At the same time, tokens can be used flexibly in decentralized finance applications.
Due to the advantages of tokenization, traditional financial institutions have recently started to show interest in this field. BlackRock, Franklin Templeton, and Fidelity have launched tokenized Treasury and money market products. Some companies in the crypto industry are testing different versions of hedge fund and return-oriented strategies on blockchain.
Growth and new strategies in the tokenization market
The tokenization market has risen rapidly in the last two years. According to data from RWA.xyz, the global value of tokenized real world assets has exceeded $30 billion. The share of US Treasury products alone is around 15 billion dollars.
Superstate is known as a tokenization startup founded by Compound founder Robert Leshner. The company decided to focus on the infrastructure platform called FundOS instead of direct fund management. Last month, Invesco undertook Superstate’s blockchain-based money market fund, which gives investors access to U.S. Treasury yield.
While Bitwise Chief Executive Hunter Horsley emphasized that capital markets have moved to blockchain, he pointed out that traditional and crypto-based financial institutions are increasingly adopting tokenized funds.
Despite all these developments, the technical structure of the Superstate Crypto Carry Fund will remain largely unchanged. Investors will continue to use the existing USCC code, token contracts and blockchain addresses. Superstate will continue token issuance and transfer services.
