Bitwise Asset Management, creator of the HOLD 10 Private Index Fund, a cryptocurrency index fund formed last November, is now offering shares to selected self-directed IRAs.
The minimum investment is $25,000 and the IRA owners must be accredited investors, meaning they must have incomes over $200,000 (or $300,000 for a couple) in each of the past two years and expectations of the same for the current year or a net worth over $1 million excluding the value of their primary residence.
(Related: Shining a Light on Bitcoin)
The fund invests in the 10 largest cryptocurrencies on a market-weighted basis, rebalances monthly and charges a manager fee of 2.5%. It currently has 500 investors and is limited to a total of 2,000, under the regulations of the JOBS Act (Jumpstart Our Business Startup), which passed in 2012.
“We have a strong belief in the long-term potential for crypto assets, and in many ways, retirement accounts are a perfect place for people to invest in that potential and on that time scale,” said Hunter Horsley, CEO, Bitwise Asset Management, in a statement.
Why would investors saving for retirement want to own shares of a fund that invests in cryptocurrencies, among the most volatile assets available today, and one where Bitcoin alone accounts for about 50% of the AUM?