Bitwise Investments is adding two funds for decentralized finance (DeFi) protocol tokens – AAVE (AAVE, +0.9%) and UNI (UNI, +1.04%) – to its lineup of institutionally-focused investment vehicles.
The new funds by the California-based manager will invest directly in one of two large-cap tokens: AAVE, of the non-custodial lending protocol; and UNI, from the decentralized exchange Uniswap. Both are the largest DeFi protocols of their type.
Bitwise, which manages over $1 billion in crypto bets, had previously limited its pure-play funds to bitcoin (BTC, -0.79%)ethereum (ETH, +0.53%)
Hedge funders – at least those with an appetite for crypto – have been warming up to the DeFi markets this year. A May study by consultancy PwC estimated that 31% of crypto hedge funds have used decentralized exchanges to execute trades and more than a quarter were invested in AAVE.
Read more: Hedge Fund Giants Druckenmiller, Loeb Back $70M Funding for Crypto Asset Manager Bitwise
The tokens’ respective protocols have been surging for the better part of a year as investors of all stripes dug deeper into the crypto ecosystem. Aave’s lending tool boomed – up more than 70x since July 2020 with $6.9 billion in loans on platform. Uniswap’s trading platform processed over $60 billion in transactions in June alone.
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source of news:coindesk
