Bitwise is partnering with Morpho, a decentralized finance (DeFi) protocol, to introduce on-chain vaults that let users earn yield without giving up control of their assets.
The company announced on X that the first vault aims to deliver around 6% annual returns by using overcollateralized lending pools.
Each vault will use different strategies managed by Bitwise’s portfolio manager, Jonathan Man. He will oversee asset selection and risk management.
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This launch follows Bitwise’s earlier prediction that on-chain vaults, what it called “ETFs 2.0”, will see assets double in 2026. In that forecast, the firm compared vaults to “on-chain investment funds”.
Bitwise believes that new, skilled curators will join the market in 2026 and attract billions in deposits. The firm expects mainstream financial media to take notice, with outlets like Bloomberg or the Financial Times labeling them “ETFs 2.0″.
A main benefit of these vaults is flexibility, according to Morpho. Users can add or withdraw funds at any time, unlike some staking options that require lockups. Managers, in turn, earn from performance or management fees.
Morpho describes vaults as a simpler way to put capital to work, similar to traditional funds but powered by automated code instead of intermediaries. The team called the partnership with Bitwise “an important step for Morpho’s infrastructure positioning”.
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