Bitwise Asset Management has begun converting Coinbase’s tokenized equities into automated portfolios centered on artificial intelligence, robotics and broader technology themes. The portfolios draw from tokenized versions of shares including Nvidia, Palantir and Intuitive Surgical, rebalancing exposure through smart contracts rather than traditional fund administrators.
Coinbase’s tokenized stock program, launched earlier this year on Base, has recorded cumulative trading volume above $480 million through October, with average daily volume reaching $4.2 million in the past 30 days. Bitwise’s automation layer sits on top of this liquidity, executing daily weight adjustments tied to proprietary AI-sector signals derived from on-chain activity and equity options data.
"This is no longer simple tokenization—it is the live automation of sector rotation on rails that never close, giving crypto treasuries direct, rules-based equity exposure without ever touching a traditional brokerage account."
Institutional flows into thematic equity products have remained elevated even as broad equity markets cooled. Year-to-date, the Invesco AI and Next Gen Software ETF has gathered $3.1 billion in net inflows while posting a 41 percent total return. Bitwise’s on-chain version offers the same sector beta but settles in USDC and permits 24-hour position adjustments without prime-brokerage friction.
On-chain metrics show growing wallet concentration among entities holding tokenized equities for more than seven days, suggesting accumulation by longer-horizon funds rather than short-term traders. Glassnode data indicates the number of addresses holding at least $100,000 equivalent in tokenized tech names rose 27 percent month-over-month in September.
The structure also sidesteps several legacy constraints. Because the underlying assets reside on Base, Bitwise can embed automated tax-loss harvesting and collateral reuse directly into the contract logic, features that remain operationally complex for conventional mutual-fund or ETF wrappers.
Critically, the product targets crypto-native allocators who already maintain stablecoin treasuries and seek equity beta without converting back to fiat. This cohort has expanded rapidly; data from Coinbase Institutional shows stablecoin holdings by its institutional clients grew 63 percent year-over-year to $9.8 billion.
Still, liquidity fragmentation remains a constraint. Tokenized equity volumes are still two orders of magnitude below the underlying shares traded on Nasdaq. Bitwise mitigates this by capping initial portfolio sizes at $75 million and maintaining a reserve of spot tokens for redemption flows.
The launch underscores a larger shift: tokenization is moving beyond stablecoins and Treasuries into equity strategies where automation and continuous settlement deliver measurable operational alpha. If volumes scale, similar thematic baskets could pressure traditional ETF issuers to integrate on-chain settlement within the next two years.