Bitwise Launches Non-Custodial DeFi Vaults With Morpho

Bitwise Asset Management, a top crypto management firm, has inked a collaboration with Decentralized Finance (DeFi) lending protocol Morpho.

The crypto firm announced the development on X, stating that both companies plan to launch non-custodial on-chain vaults targeted at generating yield.

Bitwise Demonstrates Interest in On-Chain Vaults

According to the announcement on X, Bitwise acknowledged that vaults are an integral part of finance, which is fast-moving on-chain.

It noted that the first vault will focus on securing an annual percentage yield of 6%.

Bitwise says it plans to invest in overcollateralized lending pools to achieve this percentage of APY.

“Finance is moving onchain. Vaults are a key part of that, offering investors a transparent way to earn digital yield on their assets,” Bitwise explained.

As part of the terms of their agreement, Bitwise is responsible for the deployment of multiple strategies across vaults on Morpho.

In addition, the “curation, strategy, and risk management” will be led by Jonathan Man, Bitwise portfolio manager and head of multi-strategy solutions.

In recent weeks, Bitwise has shown an interest in vaults, describing them as “onchain investment funds.”

Based on its report, users can simply deposit assets into a vault, while a third party manages the assets and utilizes them to generate yield across DeFi.

Bitwise cited that on-chain vaults or ETFs 2.0, as they are called, would see up to a 100% surge in assets under management (AuM) this year.

Bitwise Expands Its Crypto ETF Footprint

Amid this achievement, Bitwise has been actively involved in the crypto ETF space.

The spot digital asset issuer has rolled out several altcoin funds, joining other top asset managers in the ETF race.

In mid-January, it launched the Bitwise Chainlink ETF on NYSE Arca under the ticker CLNK. This was the second fund in the U.S. to offer direct ownership of LINK tokens.

At the time, its closest competitor was Grayscale’s existing GLNK product.

The fund has a 0.34% management fee, but the sponsor decided to waive the entire fee for three months on the first $500 million in assets.

More recently, it also launched the Bitwise Proficio Currency Debasement ETF on NYSE Arca. This is a fund that combines BTC with gold and other precious metals, in addition to investing in mining stocks.

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