Bitwise - [Web3 Breakdowns, EP.02]

Today, we’re breaking down Bitwise. Founded in 2017, Bitwise is known for managing the world’s largest crypto index funds with over $1.2bn in assets under management. In this breakdown, we cover the value proposition of Bitwise, how the business compares to traditional asset managers, and why there is a lack of competition today for crypto indexing.  To help break down Bitwise, I am joined by co-founder Hunter Horsley. Hunter shares his journey with the business, key lessons launching a business within the crypto space, and some interesting data points around investor adoption of crypto. I hope you enjoy this breakdown of Bitwise. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @Web3Breakdowns | @patrick_oshag | @JoinColossus Show Notes[00:02:14] - [First question] - The history of Bitwise and what they do [00:04:29] - Some of the structures of their available funds[00:05:47] - Why use a fund oriented structure compared to something like Coinbase[00:07:09] - The governing investment and management philosophy of Bitwise[00:09:07] - Are the yields distributed back to the customer?[00:10:33] - Keys steps in a transaction chain of $1 invested in the Bitwise 10 fund[00:12:43] - Overview of the OTC system and their trading volume currently[00:14:12] - Cold storage, security, and his thoughts on self-custody[00:16:12] - His thoughts on valuation and what makes a particular project worth holding[00:19:13] - Managing the business below the topline and whether it’s similar to other asset management companies[00:20:52] - Their sales, core customers, and go-to-market strategy[00:22:43] - Ways advisors are using crypto and working in exposure for their clients[00:25:25] - Lessons learned about selling to and acquiring RIAs[00:28:40] - Being an educational company with index funds attached[00:29:54] - Why are there seemingly no Bitwise competitors[00:31:59] - Some crypto assets that might become index worthy in the future[00:35:19] - Driving forces behind who will win and lose in this space[00:36:54] - A major lesson learned while being an operator in the crypto market   Learn more about your ad choices. Visit megaphone.fm/adchoices