Bitwise enters DeFi with $5M allocation to Maple Finance

Bitwise Asset Management has made its first institutional move into decentralised finance (DeFi) by allocating funds to Maple Finance (CRYPTO:SYRUP), signaling a growing institutional interest in on-chain lending.

The investment, estimated at around $5 million based on blockchain data, is directed toward Maple’s overcollateralised Bitcoin loans under its "blue chip secured" strategy.

This highlights a trend of institutions exploring yield-generating opportunities in DeFi, where lending markets offer higher returns compared to traditional fixed-income investments.

Sid Powell, CEO of Maple Finance, stated that Bitwise’s participation showcases the maturity of on-chain lending, offering the transparency and efficiency required by institutional investors.

Jeff Park, Bitwise’s Head of Alpha Strategies, emphasised the appeal of DeFi for generating uncorrelated returns, reinforcing the firm’s focus on crypto-native investments.

Maple’s blue-chip strategy offers an annual percentage rate exceeding 9%, significantly higher than traditional money markets and established DeFi platforms like Aave (CRYPTO:AAVE).  

The move marks a broader shift of institutional capital into DeFi, driven by its scalability and efficiency in financial operations.

Bitwise, which manages over $12 billion in assets, is a major player in crypto asset management and ETFs, and its entry into DeFi underscores the increasing overlap between traditional and decentralised finance.

With regulatory clarity improving, more institutions are expected to explore DeFi’s potential for yield and efficiency, further integrating decentralised lending into mainstream financial markets.

At the time of reporting, the Maple Finance (SYRUP) price was $0.1415.