The internet is undergoing a transformation. What began as a static information network—Web1—evolved into the interactive, social-driven Web2. Now, experts predict we’re entering Web3, a decentralized era powered by blockchain, digital ownership, and user-centric platforms. At the heart of this shift is the Bitwise Web3 ETF (NYSE: BWEB), an investment vehicle designed to give both retail and institutional investors exposure to companies leading this next-generation digital revolution.
Why Invest in BWEB?
The rise of Web3 isn’t just about cryptocurrencies—it's about a fundamental shift in how data, identity, and value are managed online. BWEB offers a strategic way to gain diversified access to this emerging ecosystem through publicly traded equities.
Well-Positioned Companies
BWEB tracks the Bitwise Web3 Equities Index, which includes up to 40 companies believed to be at the forefront of Web3 innovation. These are not speculative startups but established public firms actively involved in blockchain infrastructure, decentralized finance (DeFi), non-fungible tokens (NFTs), gaming ecosystems, and digital asset platforms.
By focusing on companies with real revenue streams and clear exposure to Web3 technologies, BWEB reduces the noise and volatility often associated with early-stage crypto ventures while maintaining high-growth potential.
👉 Discover how Web3 investing can reshape your portfolio
Pure-Play Web3 Focus
One of BWEB’s defining features is its strict eligibility criteria: at least 85% of the fund’s holdings must derive significant business activity from core Web3 sectors. This ensures that investors aren’t getting diluted exposure to tangential tech trends but are instead invested in firms directly contributing to or benefiting from decentralized web infrastructure.
Examples include companies involved in blockchain development, crypto exchange operations, digital wallet services, and infrastructure providers for decentralized applications (dApps).
Built by Crypto Investment Experts
Managed by Bitwise Investment Manager, LLC, one of the largest and most experienced crypto asset managers, BWEB leverages deep industry knowledge to curate its index. Unlike traditional ETFs that may include loosely related tech stocks, Bitwise applies rigorous qualitative and quantitative analysis to identify true Web3 innovators.
The fund also benefits from sub-advisory support by Vident Asset Management and custody services from The Bank of New York Mellon, ensuring institutional-grade oversight and security.
Fund Overview: Key Details
Understanding the structure and performance metrics of BWEB helps investors assess its fit within a broader portfolio strategy.
Fund Summary
- Ticker Symbol: BWEB
- Exchange: NYSE
- Inception Date: October 3, 2022
- Adviser: Bitwise Investment Manager, LLC
- Sub-Adviser: Vident Asset Management
- Administrator & Custodian: The Bank of New York Mellon
- Index Provider: Bitwise Index Services, LLC
- Expense Ratio: 0.85%
- Number of Holdings: 42
- Net Assets (AUM): $4.24 million (as of June 30, 2025)
This lean, focused approach allows for agility in responding to fast-moving technological developments while maintaining transparency and regulatory compliance.
Top 10 Holdings: Where BWEB Invests
While the full portfolio includes 42 companies, the top holdings represent the most significant allocations. As of the latest data:
- Take-Two Interactive Software (TTWO) – 4.33%
Holdings are subject to change based on market conditions and index rebalancing. However, the fund consistently prioritizes firms with direct exposure to blockchain gaming, NFT integration, decentralized infrastructure, and digital asset ecosystems.
Other typical sectors represented include:
- Blockchain-based financial services
- Cloud computing for dApps
- Cybersecurity for decentralized networks
- Digital identity solutions
This concentration ensures investors gain meaningful exposure to companies shaping the future of the open internet.
👉 See how top-performing Web3 assets are selected
Performance Snapshot (as of June 29, 2025)
Past performance offers insight into how BWEB has navigated market cycles since its inception.
| Metric | 3-Month | YTD | 1-Year | Since Inception |
|---|---|---|---|---|
| NAV Return | 39.31% | 21.57% | 2.30% | 21.57% |
| Market Price Return | 39.01% | 21.00% | 2.44% | 21.00% |
Performance data quoted represents past performance and is no guarantee of future results. Short-term performance, in particular, is not a good indication of the fund's future performance, and an investment should not be made based solely on returns.
Notably:
- The median 30-day bid-ask spread is just 0.17%, indicating strong liquidity and efficient trading.
- The fund has traded at a premium on most days, reflecting strong investor demand.
- As of Q2 2025, it had only one day of trading at a discount—highlighting consistent market confidence.
Net Asset Value vs. Market Price
As of June 29, 2025:
- NAV: $67.12 (+1.46% daily change)
- Market Price: $67.22 (+1.48% daily change)
This tight alignment between NAV and market price suggests healthy secondary market activity and minimal pricing inefficiencies.
Frequently Asked Questions (FAQ)
Q: What exactly is Web3?
A: Web3 refers to a decentralized version of the internet built on blockchain technology. It emphasizes user ownership of data, digital assets (like NFTs), and peer-to-peer interactions without centralized intermediaries like big tech platforms.
Q: Is BWEB a cryptocurrency ETF?
A: No. BWEB does not hold cryptocurrencies directly. Instead, it invests in publicly traded companies that are actively engaged in Web3-related businesses such as blockchain development, crypto exchanges, decentralized finance platforms, and blockchain-integrated gaming.
Q: How often does BWEB distribute dividends?
A: BWEB makes distributions annually. For example, in December 2023, it declared an ex-date of December 27, with payments issued on December 30. Distributions may include ordinary income or capital gains depending on portfolio activity.
Q: Can individual investors buy BWEB easily?
A: Yes. BWEB trades on the NYSE like any other stock. Investors can purchase shares through their brokerage accounts without needing special permissions or crypto wallets.
Q: What risks should I consider before investing?
A: Like all ETFs, BWEB is subject to market risk. Additionally, because it focuses on a nascent and rapidly evolving sector, it may experience higher volatility than broader market funds. Regulatory changes affecting blockchain or crypto-related businesses could also impact performance.
Final Thoughts
The Bitwise Web3 ETF (BWEB) stands out as a forward-looking investment option for those who believe in the long-term potential of decentralized technologies. With expert management, strict eligibility criteria, and transparent reporting, it offers a regulated, accessible path into one of the most innovative corners of the digital economy.
Whether you're exploring blockchain integration in gaming or tracking the evolution of decentralized finance, BWEB provides a curated gateway to the companies building the next iteration of the web.