Bitcoin Hitting New ATHs: Remaining bullish on crypto but getting cautious on Bitwise 10 Crypto Index Fund (BITW) due to the high NAV premium

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Bitcoin continues its climb, reaching new all-time highs (ATHs), and now sitting at ~$23,000. Crypto markets more broadly have continued to rally as well, leaving many investors looking for a means to gain asset class exposure. Many have turned to exchange listed trust products like Bitwise, which has seen prices sore lately. The rally which cooled during the latest session, has led to a sizable NAV premium, and we would caution investors against buying at current levels.

Bitcoin and crypto bull market continues. This week, Bitcoin pushed past $20,000 resistance to reach new all-time highs. Bitcoin has room before reaching our possibly conservative price target of $25,000 and we believe the crypto rally more broadly has room to continue. As underlying crypto prices have sharply risen, so has investor interest in gaining convenient cost-effective exposure to the asset class.

Exchange traded products fill a valuable market void. Difficulties, delays and security considerations associated with opening accounts at crypto exchanges and purchasing assets directly are frictions many investors seek to avoid by instead owning an ETP. ETPs give investors indirect crypto exposure via listed stock products that hold und...

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