Bitwise Asset Management launches its DeFi initiative with funds destined for Maple Finance’s Bitcoin loans that exceed loan values. Maple Finance shared no specific investment amount but market data proves a $5 million jump in its Total Value Locked between March 4 and March 5 from Bitwise’s capital.
In a statement Maple Finance’s CEO Sid Powell declared that institutional investors see on-chain lending infrastructure as advanced and ready for market use. Institutional investors are changing their strategy by embracing blockchain-based financial solutions for creating better and faster investment opportunities.
Bitwise Explores On-Chain Credit Opportunities
The investment from Bitwise shows that institutional investors want to use DeFi products more as US crypto laws get friendlier. Since Trump became president he promised to help America lead the world in crypto development by placing friendly cryptocurrency managers into financial governing roles. The new policy support from authorities helps traditional fund managers study how to invest in digital assets.
Bitwise traditionally locates investments that produce varied returns without market correlation because our alpha strategies create profits from crypto assets. On-chain credit opportunities now create a promising option for institutional investors who want to earn more from alternative market investments.
According to Dune Analytics figures Maple delivers yields above 9% APR through its secured investment plans. Investors earn significantly more returns from Bitwise than the 0.01% Aave can offer on Bitcoin loans and the almost 4.3% yield of traditional U.S. dollar money markets according to SOFR.
Maple Finance established itself in 2021 to create secure on-chain credit systems for institutional clients. Through different loan approaches the company now handles more than $700 million in total value locked assets.
As the largest digital asset manager Bitwise adds to its financial offerings by launching exchange-traded funds (ETFs). The company has established two cryptocurrency market tools BITB for Bitcoin and ETHW for Ethereum markets.
Bitwise’s expansion into DeFi positions makes blockchain-based lending more acceptable to capital markets professionals.
