Bitwise launches automated portfolios of tokenized stocks on Base network

Bitwise Asset Management just made it possible for non-US investors to hold a self-rebalancing portfolio of tokenized US stocks directly in their own crypto wallets. The firm’s new Automated Token Portfolios, or ATPs, went live on August 25, offering thematic equity baskets built on top of Coinbase’s tokenized shares infrastructure on Base.

The first offering is an equal-weighted basket of the Magnificent 7 tech giants, branded Mag7X, alongside separate portfolios focused on robotics and AI leaders. All for an access fee of 0.15%, plus trading and platform costs.

How the portfolios actually work

The mechanics here are worth unpacking. Unlike a traditional ETF or fund where investors hold shares in a pooled vehicle, ATPs deposit individual tokenized shares directly into a user’s non-custodial wallet. The investor owns discrete tokens representing Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta, and Tesla, not a synthetic wrapper around them.

Automated rebalancing is handled by Glider’s technology, which periodically adjusts holdings to maintain the portfolio’s target weights. Instead of sitting inside a brokerage account, assets live on-chain where they can theoretically be used as collateral in DeFi lending and borrowing protocols.

The tokenized shares themselves are issued through Coinbase’s recently launched equities product on Base, with each token claimed to be backed 1:1 by the underlying stock. Bitwise is transparent about one important caveat: it does not independently verify Coinbase’s backing claims. Investors are essentially trusting Coinbase’s infrastructure and attestations on that front.

Eligibility is restricted to non-US persons outside the United States. Onboarding happens through a non-custodial wallet, meaning Bitwise never takes possession of client assets.

Why this matters for on-chain finance

Bitwise manages $9 billion in client assets, making it one of the larger crypto-native asset managers in the world. When a firm of that scale starts packaging tokenized equities into managed portfolios, it signals something beyond a novelty product launch.

The 0.15% access fee positions ATPs aggressively against conventional alternatives. Most equity ETFs charge somewhere in that range for passive index tracking, but they don’t offer the composability benefits of on-chain assets. The ability to use individual portfolio holdings as DeFi collateral, or to transfer them peer-to-peer without intermediaries, represents functionality that simply doesn’t exist in legacy brokerage infrastructure.

The competitive landscape and what to watch

What distinguishes Bitwise’s approach is the combination of non-custodial ownership and automated management. Most tokenized asset products still require investors to trust a custodian or intermediary with their holdings. ATPs thread a needle by automating portfolio construction while leaving asset custody entirely with the investor.

The risk factors are worth noting. Tokenized equities on Base are still relatively new, and the 1:1 backing model depends entirely on Coinbase’s operational integrity and the legal frameworks supporting it. If Coinbase’s tokenized shares ever faced a regulatory challenge or a backing discrepancy, ATP holders would be exposed to that risk directly.

There’s also the question of liquidity. Tokenized stocks need sufficient on-chain trading volume to support efficient rebalancing. If the Glider system needs to sell Tesla tokens and buy more Apple tokens to maintain equal weighting, it needs liquid markets on both sides of that trade.

The geographic restriction to non-US investors also limits the addressable market, at least for now. US securities law makes domestic offering a considerably more complex undertaking.

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