Crypto: Breaking Bitwise To Launch Onchain Vaults Via Morpho
The first vault strategy targets 6% annual percentage yield via over-collateralized lending pools, managed by Bitwise.
Digital asset management firm Bitwise has teamed up with decentralized finance (DeFi) lending protocol Morpho to launch non-custodial on-chain vaults aimed at generating yield.
The move was announced on X on Monday, with Bitwise noting that its first vault will target an annual percentage yield of 6% by investing in overcollateralized lending pools.
“Finance is moving onchain. Vaults are a key part of that, offering investors a transparent way to earn digital yield on their assets,” Bitwise said.
Bitwise will deploy multiple strategies across vaults on Morpho, with the firm’s “curation, strategy, and risk management” being led by Bitwise portfolio manager and head of multi-strategy solutions, Jonathan Man.
The move comes just a month after Bitwise forecasted that on-chain vaults, which it dubbed “ETFs 2.0,” would double in assets under management in 2026.
In the report, Bitwise likened vaults to “onchain investment funds,” explaining that users can simply deposit assets into a vault, with a third party then managing the assets and utilizing them to generate yield across decentralized finance.
“We believe a wave of high-quality curators will enter the market in 2026, drawing billions of dollars of capital into the vaults they manage. The space will grow so fast it’ll catch the attention of major financial publications. One of them — Bloomberg, The Wall Street Journal, or the Financial Times — will label vaults ‘ETFs 2.0,’” Bitwise said.
A key aspect of the onchain vaults is that users can deposit or withdraw their funds at any time, with the funds not locked like they are in certain staking protocols. On the curator side, they see returns via “management and/or performance fees.
“Vaults share a similar goal to traditional funds — providing users with a simpler way to deploy capital more effectively and efficiently, but with automated and programmable code instead of intermediaries,” Morpho states on its website.
Source: CoinTelegraph
