Crypto asset manager Bitwise is entering the fast-growing market of tokenized funds for the first time through a planned acquisition of Superstate’s crypto carry fund.
Bitwise intends to assume investment management responsibilities for the Superstate Crypto Carry Fund, known by its ticker USCC, on June 1, the firms said on Thursday.
The fund will be renamed the Bitwise Crypto Carry Fund while continuing to run on Superstate’s blockchain infrastructure.
USCC manages more than $267 million in assets and provides qualified investors with exposure to a crypto “cash-and-carry” strategy. The trade seeks to take advantage of the gap between spot crypto prices and futures contracts, which often trade at a premium during bullish market conditions. More than $100 million of the fund’s assets are actively used as collateral in decentralized finance (DeFi) protocols such as Aave and Kamino.
The move gives Bitwise, which oversees $11 billion in crypto assets across ETFs and private funds, its first foothold in the growing market for tokenized investment products.
Tokenized funds have become one of the fastest growing areas of digital assets as global asset managers seek to modernize how funds operate. Firms including BlackRock, Franklin Templeton and Fidelity have launched tokenized financial and money market products, while crypto-native firms are experimenting with onchain versions of hedge funds and returns strategies.
Through tokenization, investors can hold blockchain-based ownership tokens in the fund that can move and settle around the clock. Supporters say the structure could reduce settlement delays and make funds easier to transfer or use in decentralized finance applications.
The market has grown rapidly over the past two years. Data from RWA.xyz shows tokenized real-world assets have exceeded $30 billion globally, with tokenized US financial products accounting for more than $15 billion.
The transition also reflects a shift in strategy for Superstate, the tokenization startup founded by Compound creator Robert Leshner. Instead of managing funds directly, Superstate plans to focus on FundOS, its infrastructure platform for tokenized investment products. Last month, $2.2 trillion asset manager Invesco took over Superstate’s onchain money market fund, which gives investors US Treasury yield.
“Capital markets are moving on the chain,” Bitwise CEO Hunter Horsley said in a statement. “Traditional and crypto-native institutions are increasingly using tokenized funds.”
The structure of the fund itself remains largely unchanged after the transfer. Existing investors will retain the same USCC ticker, token contracts and blockchain address, while Superstate will continue to handle token issuance and transfer services.
