Bitwise to Launch Automated Tokenized US Stock Portfolios for Magnificent Seven, AI Themes

Bitwise, a crypto asset manager, is introducing a portfolio product that automatically manages baskets of tokenized US stocks. The offering will let investors keep assets in their own wallets rather than place them in a fund while gaining exposure to themes such as the Magnificent Seven and artificial intelligence.

Bloomberg reported on August 25 that Bitwise plans to offer the product, called Automated Token Portfolios, or ATP, to eligible investors outside the US. Bitwise currently manages about $9 billion in client assets.

ATP uses tokenized US stocks provided by Coinbase. A system developed by technology firm Glider automatically rebalances investor holdings to match target weightings set by Bitwise. The initial lineup will include portfolios focused on the Magnificent Seven, as well as AI and robotics-related stocks.

Unlike a traditional fund, the structure does not pool investor assets into a single investment vehicle. The tokenized stocks remain in self-custodied wallets controlled by investors, while the portfolio mix and weightings are adjusted automatically.

Matt Hougan, Bitwise's chief investment officer, said investors had needed to place assets in a fund for more than a century to use professional investment models. ATP allows them to keep those assets in their own wallets while still applying the investment model.

The product is due to launch in the coming weeks. The fee for using the management model is 0.15%.

The shift to move traditional financial assets such as stocks and bonds onto blockchains is accelerating. Data from RWA.xyz showed the tokenized asset market had expanded to about $38 billion.