Bitwise Launches On-Chain Vaults Offering 6% Yield

Bitwise has unveiled a new offering of non-custodial on-chain vaults in collaboration with the DeFi protocol Morpho. The initial product aims to provide investors with an annual yield of 6% through over-collateralized lending pools.

As finance transitions to on-chain systems, vaults play a crucial role, allowing investors to transparently earn digital yield on their assets. We are thrilled to announce our new non-custodial vault strategies as a curator on @Morpho.

— Bitwise (@BitwiseInvest) January 26, 2026

Jonathan Mann, Bitwise's portfolio manager, will lead the strategy and risk management for these vaults, which are touted as essential for the ongoing shift towards on-chain finance and as a straightforward means of income generation.

A distinctive aspect of these vaults is their flexibility, allowing users to deposit and withdraw funds at any time without locking up assets, unlike traditional staking protocols. This approach mirrors traditional investment funds but operates through smart contracts instead of intermediaries.

Bitwise has previously projected that such innovations, termed "ETF 2.0," could potentially double their assets under management by 2026, with analysts anticipating significant capital inflows and heightened interest from major financial media.

Morpho is currently ranked seventh among DeFi protocols, with a total value locked of $6.7 billion.

In related insights, Bitwise analysts noted that incorporating Bitcoin and gold into portfolios could substantially enhance efficiency when adjusted for risk compared to conventional strategies.