Bitwise Launches Automated Token Portfolios for Crypto Investors
Bitwise, a major asset manager, is set to launch three automated token portfolios (ATPs) by August 25. These portfolios will be built using tokenized U.S. stocks issued by Coinbase Global (NASDAQ: COIN). An ATP is a professionally picked basket of stocks represented as crypto tokens in a wallet.
Investors can use these tokens for various applications, unlike holding the stocks directly. The ATPs are similar to exchange-traded funds (ETFs), but investors have direct control over the tokens and can use them as collateral for decentralized finance (DeFi) apps or lending.
The flagship ATP, Mag7X, holds eight stocks at an equal weight, including Coinbase Global. It charges a 0.15% access fee, which is comparable to what investors would pay on an index ETF. The flexibility of the capital is the main point of the ATPs, allowing users to tap their crypto assets for collateral.
U.S.-based investors should pay attention to this concept, as regulations could change soon. The Securities and Exchange Commission (SEC) is finalizing its tokenized securities exemptions, which are slated for completion in 2027.