BWEB: There Are Better Web3 Investments

SummaryBitwise Investments launched an ETF that aims to expose investors to publicly traded equities that will benefit from the rise of "Web3."Web3 is the evolution of the internet from centrally controlled walled gardens to more open platforms where community members own their data and their content.I think some of the companies that are among the top 10 holdings of this ETF will actually struggle in a Web3 environment.Bitwise Investments now has a third publicly traded crypto fund after launching its Bitwise Web3 ETF (BWEB) this week. The point of the fund is to track publicly traded companies that will benefit from the buildout of Web3. The ETF currently has $1.7 million in AUM, 33 total holdings, and an expense ratio of 0.85%. Before we get into the specifics of some of the fund's holdings, let's first describe what Web3 even is and why many believe it is an improvement over what we currently recognize as Web2.Web1 vs. Web2 vs. Web3There is actually a bit of an argument over what Web3 really even is as evidenced by Twitter (TWTR) founder Jack Dorsey's somewhat cavalier call for Web5 a few months ago. Despite some of the infighting from potential innovators, I believe most interpretations of Web3 center around decentralization as a core theme. To better understand what that means, it's important to comprehend the transformation of the internet from Web1 to Web2 as well. Web 1: pre-dot com bubble internet pages. Mostly stat...