Bitwise Asset Management wants its crypto futures ETF (exchange-traded fund) converted from long-only strategies to rotate between crypto and US Treasuries exposure depending on market trends.
Crypto adoption continues to grow, with institutional players like Bitwise extending their reach in the space.
Bitwise Wants Its Futures ETFs to Align with Crypto and US Treasuries Trend
The firm is pushing for conversion to strategic financial instruments, ones that show flexibility to market trends in offering exposure to crypto and US treasuries.
“We have Bitwise out with another ETF filing. It will be a treasury and bitcoin rotation strategy. The ticker will be BITC,” ETF specialist James Seyffart remarked.
The conversion could happen around December 3, 2024, with the funds expected to change their names and strategies, specifically:
- BITC, the Bitwise Bitcoin Strategy Optimum Roll ETF, will become the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF.
- AETH, the Bitwise Ethereum Strategy ETF, will convert to the Bitwise Trendwise Ethereum and Treasuries Rotation Strategy ETF.
- BTOP, the Bitwise Bitcoin and Ether Equal Weight Strategy ETF, will convert to the Bitwise Trendwise BTC/ETH and Treasuries Rotation Strategy ETF.
Read more: What Is a Bitcoin ETF?
The ETFs would adopt Bitwise’s proprietary “Trendwise” model, rotating from crypto into treasuries and vice versa. This strategy would minimize downside volatility while achieving long-term price appreciation.
“The new Trendwise strategies capitalize on that momentum through a trend-following strategy that rotates between crypto and Treasuries exposure based on market direction. The goal is to help minimize downside volatility and potentially improve risk-adjusted returns,” an excerpt in the press release read, citing Bitwise CIO Matt Hougan.
The strategy, which utilizes the 10- and 20-day exponential moving averages (EMA) of crypto assets like Bitcoin and Ethereum, invests in these assets when the 10-day EMA surpasses the 20-day EMA, indicating upward momentum. When the trend reverses, the investment rotates into Treasuries.
Despite these shifts, the funds’ expense ratios and tax treatments will remain unchanged, meaning that existing investors do not need to take any action ahead of the conversions.
Bitwise, a prominent player in the crypto industry, provides exposure to Bitcoin and Ethereum through its crypto ETFs, BITB and ETHW. In August, the firm expanded its footprint by acquiring European crypto fund provider ETC Group and recently filed for a spot XRP ETP.
Despite these positive strides, Bitwise is currently facing legal challenges. As reported by BeInCrypto, Vandelay Industrieshas accused Bitwise and its top executives of financial misconduct, seeking $2 million in damages. This lawsuit adds a contentious element to what has otherwise been an eventful year for the asset manager.
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