Crypto asset manager Bitwise is entering the rapidly expanding tokenization market for the first time. The company has reached an agreement to acquire management of the crypto carry fund currently overseen by Superstate. This move aims to strengthen Bitwise’s position in the blockchain-based fund arena.
Transition of Superstate fund management begins
Starting June 1, Bitwise will take over investment management of the Superstate Crypto Carry Fund, widely known by its ticker USCC. Under the agreement, the fund will be renamed the Bitwise Crypto Carry Fund, but its blockchain infrastructure will continue to run on Superstate’s technology.
USCC currently manages over $267 million in assets and offers qualified investors exposure to a crypto “cash-and-carry” investment strategy. This approach seeks to profit from differences between spot prices and futures contracts; the fund benefits when futures prices trade higher than spot prices, a trend often seen during bullish periods.
Key features and innovations of the fund
More than $100 million of the USCC fund’s assets serve as collateral on decentralized finance (DeFi) platforms like Aave and Kamino. Bitwise’s acquisition is viewed as part of its broader effort to diversify its $11 billion asset portfolio, including ETFs and private funds, while bolstering its standing in the tokenization sector.
Tokenization enables investors to hold ownership tokens operating on the blockchain within the fund. This system allows for transactions around the clock, reducing delays associated with transfers and settlements. Additionally, these tokens can be flexibly used across various decentralized finance applications.
Driven by these advantages, traditional financial institutions have shown increasing interest in tokenization. Firms like BlackRock, Franklin Templeton, and Fidelity have all launched tokenized treasury and money market products. Several crypto industry players are also trialing new hedge fund and yield-focused strategies executed on blockchains.
Growth and new strategies in the tokenization market
The tokenization market has experienced sharp growth over the past two years. According to RWA.xyz, the global value of tokenized real-world assets has surpassed $30 billion, with tokenized US Treasury products representing $15 billion of that total.
Superstate is a tokenization startup founded by Robert Leshner, the creator of Compound. The company recently shifted its focus from direct fund management to developing its infrastructure platform, FundOS. Last month, Invesco took over Superstate’s blockchain-based money market fund, enabling investors to gain exposure to US Treasury yields.
Bitwise CEO Hunter Horsley emphasized in a statement that capital markets are moving onto the blockchain, noting the growing adoption of tokenized funds by both traditional and crypto-native financial firms.
Despite these changes, the structure of the Superstate Crypto Carry Fund will remain largely intact. Investors can continue using the existing USCC ticker, token contracts, and blockchain addresses. Superstate will keep handling token issuance and transfer services.
