Key Highlights
- Bitwise launched Automated Token Portfolios for eligible non-U.S. investors to hold tokenized U.S. stocks in their own crypto wallets.
- The first portfolios cover the Magnificent 7, SpaceX, robotics and AI companies, with a 0.15% methodology access fee.
- Glider will automatically rebalance the portfolios, while Coinbase provides the tokenized U.S. stocks on Base.
Bitwise, an asset management firm, launched Automated Token Portfolios (ATPs) on Tuesday, giving eligible non-U.S. investors in supported jurisdictions a way to hold portfolios of tokenized U.S. stocks directly in self-custodied crypto wallets.
According to the company’s announcement on X, the products went live on August 25 and use Coinbase’s tokenized stocks on Base, along with technology from Glider to automate portfolio rebalancing.
The first portfolios cover the Magnificent 7 stocks, as well as companies focused on artificial intelligence and robotics. Bitwise said it will charge a 0.15% methodology access fee, with trading and platform fees charged separately.
How Bitwise’s automated portfolios work
ATPs are rules-based portfolios designed by Bitwise Investment Manager. Instead of putting money into a traditional fund, the company said investors can hold the individual tokenized stock positions in their own non-custodial wallets.
Glider provides the technology for automated rebalancing, adjusting holdings when their weights move away from the portfolio’s target allocation.
The structure allows investors to follow a predefined portfolio strategy without transferring custody of their assets to Bitwise. The products are available only to eligible non-U.S. investors outside the United States.
Mag7X leads the first portfolio offerings
The first portfolio, called Mag7X, is an equal-weighted basket of Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta and Tesla, with SpaceX also included.
Bitwise is also offering portfolios focused on artificial intelligence and robotics companies. The portfolios use Coinbase’s tokenized U.S. stocks on Base, where the underlying stock exposure is represented through blockchain-based tokens.
Investors retain custody of the assets
Bitwise Chief Investment Officer Matt Hougan said the structure allows investors to maintain control of the wallets holding their assets. “For over a century, getting a professional model meant handing your assets to a fund. ATPs mean you can keep the assets in your own wallet, and the model comes to you,” Hougan said.
Because the assets remain in self-custodied wallets, they may also be usable in decentralized finance applications that support the relevant tokens. Availability, however, will depend on the platforms and services supporting those assets.
Bitwise does not take custody of the tokenized stock positions under the ATP structure.
Tokenized stocks create a potential DeFi use case
The launch comes as tokenized U.S. stocks gain a larger presence in blockchain-based financial products.
Coinbase recently introduced tokenized versions of U.S. stocks on Base for non-U.S. users, providing the stock infrastructure used by Bitwise’s ATPs. Coinbase says the tokens are backed 1:1 by the underlying stocks, although that claim comes from Coinbase rather than an independent verification by Bitwise.
The ATP launch also builds on Bitwise’s broader work with onchain investment products. In January, the company partnered with Morpho on curated non-custodial vaults. In February, it introduced seven professionally managed crypto portfolios for financial advisers, with monitoring and rebalancing features.
Bitwise later expanded those crypto portfolio models to retail investors through Parrot’s platform and partnered with Superstate to explore recording ownership of selected Bitwise fund shares on a blockchain.
With ATPs, Bitwise is applying its model-portfolio approach to tokenized stocks, combining individual stock exposure, automated rebalancing and self-custody for eligible investors.
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