The digital landscape is evolving rapidly, and experts believe we’re standing at the edge of a transformative era—Web3. This next-generation internet promises decentralized networks, blockchain-powered applications, and a shift in how users interact with digital platforms. At the center of this movement is the Bitwise Web3 ETF (NYSE: BWEB), an investment vehicle designed to give both retail and institutional investors exposure to companies shaping the future of the internet.
Unlike traditional tech ETFs, BWEB focuses specifically on firms deeply involved in Web3 technologies such as blockchain infrastructure, decentralized finance (DeFi), non-fungible tokens (NFTs), and digital asset ecosystems. Managed by Bitwise, one of the most established crypto-focused asset managers, this ETF offers a strategic gateway into a high-growth, innovation-driven sector.
Why Invest in the Bitwise Web3 ETF?
Investing in emerging technologies can be complex and risky, especially when definitions are still evolving. BWEB simplifies access to Web3 by offering a rules-based, transparent, and expertly curated portfolio. Here’s why it stands out:
Targeted Exposure to Web3 Innovation
BWEB tracks the Bitwise Web3 Equities Index, which includes up to 40 publicly traded companies that are actively contributing to or benefiting from the growth of Web3. These aren’t just large-cap tech firms with minor blockchain experiments—they are businesses with meaningful revenue or strategic operations tied to decentralized technologies.
High Concentration of Pure-Play Web3 Companies
One of BWEB’s defining features is its focus on pure-play Web3 exposure. At least 85% of the fund’s holdings consist of companies whose core business models are directly linked to key areas of Web3 development. This ensures investors aren’t just getting incidental exposure but are truly aligned with the sector’s pioneers.
Backed by Industry Expertise
Bitwise has built a reputation as a leader in digital asset management, with deep research capabilities and a proven track record in launching innovative financial products. The firm’s experience allows BWEB to identify authentic Web3 players amid a crowded and often speculative market.
Fund Overview: Key Details
Understanding the structure and mechanics of BWEB helps investors evaluate its suitability for their portfolios.
Fund Basics
- Ticker Symbol: BWEB
- Exchange: NYSE
- Inception Date: October 3, 2022
- Expense Ratio: 0.85%
- Net Assets (AUM): $4.24 million (as of June 30, 2025)
- Number of Holdings: 42
- Index Provider: Bitwise Index Services, LLC
- Adviser: Bitwise Investment Manager, LLC
- Sub-Adviser: Vident Asset Management
These details reflect a lean, focused fund managed by experienced professionals with a clear mandate: capture long-term value from the evolution of the internet.
Top Holdings: Who’s Leading the Charge?
While the full portfolio spans a range of sectors within Web3, the top 10 holdings offer insight into where the fund sees the most significant opportunities. 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 companies involved in gaming platforms with blockchain integration, crypto exchanges, decentralized infrastructure providers, and firms enabling digital ownership through NFTs.
This strategic selection process ensures that BWEB remains aligned with real-world adoption trends rather than speculative hype.
Performance Snapshot (as of June 29, 2025)
Past performance can provide context for future expectations, though it does not guarantee results.
| Period | NAV Return | Market Price Return |
|---|---|---|
| 3 Months | +39.31% | +39.01% |
| Year-to-Date | +21.57% | +21.00% |
| 1 Year | +2.30% | +2.44% |
| Since Inception | +21.57% | +21.00% |
The fund has shown strong momentum in recent quarters, reflecting renewed investor confidence in blockchain innovation and broader macro conditions favoring tech growth.
Net Asset Value (NAV): $67.12
Market Price: $67.22
Median 30-Day Bid-Ask Spread: 0.17%
This tight spread indicates healthy liquidity and efficient trading—important factors for active investors.
Premium/Discount Trends
Over time, BWEB has traded predominantly at a premium to its NAV, suggesting strong demand:
- In Q2 2025 alone, shares traded at a premium on 47 out of 63 days.
- Only 14 days saw discounts during the same period.
- Since inception, the fund has spent over 70% of trading days above NAV.
This consistent premium reflects investor optimism and limited arbitrage opportunities due to the specialized nature of the underlying assets.
Frequently Asked Questions (FAQ)
What is Web3, and how does BWEB gain exposure to it?
Web3 refers to a decentralized version of the internet built on blockchain technology. BWEB invests in public companies that derive significant value from Web3-related activities like blockchain development, cryptocurrency trading platforms, decentralized applications (dApps), and digital asset infrastructure.
Is BWEB a cryptocurrency ETF?
No. BWEB does not hold cryptocurrencies directly. Instead, it invests in equities of companies that operate in or benefit from the Web3 ecosystem. This makes it accessible through traditional brokerage accounts without requiring crypto wallets or exchanges.
How often does BWEB distribute income?
BWEB may make annual distributions, typically around December. For example, in December 2023, it declared an ex-date of December 27 for record holders as of December 26, with payments issued on December 30. Distributions include ordinary income but have not included capital gains recently.
What risks should investors consider?
Like all sector-specific ETFs, BWEB carries concentration risk. The Web3 space is still maturing, subject to regulatory uncertainty, technological shifts, and volatility. Additionally, because many holdings are smaller or mid-cap growth stocks, they may experience larger price swings than broad-market funds.
Can I buy BWEB in my retirement account?
Yes. Since BWEB trades like any other stock on the NYSE, it can be purchased in IRAs, 401(k)s (if permitted by plan rules), and taxable brokerage accounts.
How does BWEB differ from other crypto-related ETFs?
While some ETFs focus solely on Bitcoin futures or single-sector exposure (like mining companies), BWEB takes a broader equity-based approach across multiple facets of Web3—including software development, gaming integration, DeFi protocols, and infrastructure services—providing more diversified exposure to the ecosystem’s growth.
Final Thoughts: Positioning for the Future Internet
The Bitwise Web3 ETF (BWEB) represents more than just another tech fund—it’s a forward-looking bet on the structural transformation of the digital world. With expert curation, strict eligibility criteria for holdings, and transparent performance metrics, it offers a credible way to participate in one of the most disruptive technological shifts of our time.
Whether you're exploring early-stage innovation or building a diversified portfolio with exposure to digital transformation trends, BWEB provides a structured entry point into the Web3 economy.
As always, investors should conduct due diligence and consider their risk tolerance before investing. While past performance shows promise, the future of Web3 will depend on adoption rates, regulatory clarity, and continued technological advancement—all dynamic variables in a fast-moving space.