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Bitwise launched its first onchain vault strategy through Morpho.
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The vault targets up to 6% yield on USDC using over-collateralized lending.
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Bitwise positions onchain vaults as a new generation of investment products.
Bitwise Enters DeFi Vault Management
Bitwise Asset Management has launched its first onchain vault strategy by joining Morpho as a vault curator. The initial product targets up to 6% yield on the USDC stablecoin.
Funds are deployed into over-collateralized lending markets, with Bitwise managing strategy design and real-time risk oversight while user assets remain non-custodial and held onchain.
Making DeFi More Accessible
Bitwise said its vaults are designed for investors who want exposure to onchain yield without managing smart contract risk, collateral ratios, or protocol selection themselves.
Under the structure, vaults automatically allocate capital within predefined risk limits, functioning similarly to a diversified lending portfolio governed by smart contracts.
Vaults as ‘ETFs 2.0’
Bitwise has described onchain vaults as “ETFs 2.0,” noting rapid growth in vault-based products since 2024. Assets under management peaked in 2025 before market volatility exposed weak risk controls across parts of the sector.
The firm argues that institutional-grade risk management will be key to the next phase of DeFi growth, as major platforms like Kraken and Coinbase expand their own onchain yield offerings.
