Bitwise Asset Management has launched its first onchain vault in partnership with decentralized lending protocol Morpho, marking its entry into the DeFi space. The new vault aims to deliver up to 6% yield on the USDC stablecoin by lending into over-collateralized markets.
Bitwise said the product is designed for investors who want onchain yield without handling complex DeFi risks themselves. While funds remain non-custodial and fully onchain, Bitwise oversees strategy design and real-time risk management.
The firm described onchain vaults as “ETFs 2.0,” combining automation, transparency, and professional oversight. Vaults have grown rapidly since 2024, although some strategies suffered losses during market volatility last year.
Bitwise believes the pullback was a healthy reset and that higher-quality curators will attract new capital. As more major firms enter onchain finance, products like these signal growing institutional comfort with DeFi, even as risks such as smart contract failures and market shocks remain.
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