One of the world’s largest digital asset fund managers Bitwise has taken a first step into the growing market for non-fungible tokens (NFT) with the launch of the Bitwise Blue-Chip NFT Index Fund.

According to Bitwise, the fund is designed for “investors intrigued by the NFT market but without the time or desire to participate in periodic auctions or bid on individual pieces of art.

Trading volumes for NFT have risen rapidly in recent months and reached more than $10 billion in the third quarter of 2021.

The fund will track the Bitwise Blue-Chip NFT Collections index, a basket of the 10 largest NFT collections weighted by market capitalisation.

From launch, the fund will buy and hold in custody NFTs with a combined market cap of more than $6 billion.

“New frontiers in art are rare. Entirely new artistic mediums are even rarer,” said Bitwise CIO Matt Hougan. “NFTs have emerged as the first digitally native medium for owning art and collectibles, with enormous potential for meaning, value, and use in our increasingly digital world. For many investors, that combination spells potential opportunity.”

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