The encrypted ETF leader Bitwise, in collaboration with Morpho, has launched the first on-chain vault, officially entering the DeFi space. This vault will invest funds into Morpho's over-collateralized loan market, aiming to provide a maximum yield of 6% for USDC, with Bitwise responsible for strategy and risk control. User funds are non-custodial and held on-chain.
Bitwise refers to it as 'ETF 2.0,' expecting to double the assets under management by 2026, and plans to expand to more assets and DeFi strategies in the future.
Currently, the DeFi yield competition is fierce, with Kraken also launching high-yield similar products. Coinbase, while collaborating with Morpho, does not participate in strategy management.
Although such vaults are transparent and automated, they carry inherent risks of DeFi, such as smart contract vulnerabilities, and lack relevant insurance.