Bitwise Launches First Automated Token Portfolio, Mag7X

Automated token portfolios (ATPs) are a new way to hold and accumulate crypto assets. They're similar to exchange-traded funds (ETFs), but instead of being backed by traditional stocks, they're built using tokenized U.S. stocks issued by Coinbase Global.

The first ATP, Mag7X, was launched by Bitwise on August 25. It holds eight tokenized stocks at an equal weight and charges a 0.15% access fee, which is comparable to the fees of traditional ETFs. The main benefit of ATPs is that they allow investors to use their tokens as collateral for decentralized finance (DeFi) apps or for lending, borrowing, or trading with leverage.

Currently, U.S.-based investors cannot use ATPs due to regulatory restrictions, but Bitwise and other asset managers are working on new portfolio concepts. When the rules change in 2027, ATPs could become a valuable tool for crypto-native assets like Bitcoin and Ethereum.