Crypto asset manager Bitwise has entered the rapidly expanding tokenized fund market for the first time by taking over the management of the Superstate Crypto Carry Fund (USCC). According to an official announcement, Bitwise will assume responsibility for the investment management of the fund as of June 1.
No changes to fund structure
While the fund will be rebranded as the Bitwise Crypto Carry Fund, it will continue to operate on Superstate’s blockchain infrastructure. Currently, the USCC oversees more than $267 million in assets. It is designed to allow qualified investors to capitalize on a “cash-and-carry” strategy, profiting from the price difference between spot crypto markets and futures contracts. This approach enables investors to earn returns by exploiting premiums between spot and futures prices.
In addition, over $100 million of the fund’s assets are used as collateral on various decentralized finance (DeFi) platforms such as Aave and Kamino, effectively bridging the gap between traditional finance and the DeFi ecosystem.
Growing demand for tokenized funds
This move marks Bitwise’s first entry into the tokenized investment product space, further expanding the company’s already $11 billion crypto asset portfolio. Over the past two years, tokenized funds have become one of the fastest-growing areas in digital assets.
Major asset management firms, including BlackRock, Franklin Templeton, and Fidelity, have launched a wide range of tokenized products from treasury funds to money markets. Crypto sector innovators are also experimenting with blockchain-based hedge funds and yield strategies.
Tokenization enables investors to hold shares of a fund as blockchain-based digital tokens, allowing for instant transfers and settlements that reduce lengthy processing times. Supporters believe this makes shifting fund ownership and using assets within DeFi applications more accessible.
Superstate shifts focus to technology
Founded in 2022 by Compound protocol creator Robert Leshner, Superstate has emerged as a tokenization-focused startup. By stepping back from direct fund management, Superstate will now focus entirely on developing its infrastructure platform, FundOS, which is dedicated to tokenized fund operations.
Last month, asset management giant Invesco, which controls $2.2 trillion globally, took over Superstate’s onchain U.S. Treasury yield money market fund. This industry shift highlights increased integration of tokenization technology within traditional finance.
Bitwise CEO Hunter Horsley commented that both traditional and crypto-focused institutions are now moving capital markets onto blockchain rails:
“Capital markets are moving to blockchain, and both traditional and crypto-native institutions are increasingly adopting tokenized funds,” explained Hunter Horsley.
There will be no major changes to how the fund operates after the transition. Investors will be able to continue trading using the same USCC codes, token contracts, and blockchain addresses. Superstate will remain responsible for token issuance and transfer processes.
