Bitwise, a cryptocurrency investment startup has raised $4 million in seed funding.
Backing the San Francisco-based startup in the raise are investors including Kholsa Ventures’ Keith Rabois, General Catalyst’s Hemant Taneja and Blockchain Capital, as well as Naval Ravikant, Suna Said, Adam Ludwin, Adam Nash and Elad Gil, among others.
The funding comes as the entity unveils its HOLD 10 Private Index Fund that gives the opportunity to accredited investors in the US to get exposure to cryptocurrency market without having to purchase the cryptocurrencies.
In October, the first announcement stated that HOLD 10 would focus on the top 10 cryptocurrencies by market cap, offering investors simultaneously investment in Bitcoin, Ethereum, Bitcoin Cash and other major cryptocoins.
HOLD 10 is designed to be a passive fund, letting users invest in it and let it handle the rest. The fund will account for hard forks and “airdrops” of free tokens and will follow trading volume to establish the most promising tokens in which to invest.
Bitwise co-founder Hunter Horsley explained:
“For example, in November, bitcoin was up 58 percent, and other top 10 coins like Bitcoin Cash, Dash, and Monero were up over 100 percent. As a result, the HOLD 10 Index was up approximately 64 percent while having around 37 percent less volatility than Bitcoin.”
HOLD 10 is being tested from the start of 2017 and it found that HOLD 10 is up 1,750 percent since January, according to Horsley.
The purpose of the creation of HOLD 10 is to make it easier for people to invest in cryptocurrencies, especially for those who do not have the means to manage their cryptocurrency portfolio.
“We constantly hear people say that they’d like to invest but it’s too complicated and risky to manage a portfolio yourself actively,” Horsley told CoinDesk in an email.