Bitwise Asset Management had a new ETF filing – more precisely, it filed to convert three crypto futures ETFs from long-only strategies to strategies that rotate between crypto futures and US Treasuries exposure based on market trends. The ticker will be $BITC.
The above strategy, to be undertaken in aid of helping to reduce downside risk and foster long-term growth, shall be effective on or about December 3, 2024.
Bitwise File For ETF To Rotate Between Crypto and Treasuries
Bitwise has, therefore, submitted a proposal to the SEC for a new ETF focused on Bitcoin and treasuries. The company is reworking the investment strategy of its three crypto futures ETFs to rotate between cryptocurrency and US Treasuries through its proprietary strategy called “Trendwise.” On the given date, Bitcoin Strategy Optimum Roll ETF shall begin operating under Trendwise Bitcoin and Treasuries Rotation Strategy ETF (BITC).
Ethereum Strategy ETF shall be renamed Trendwise Ethereum and Treasuries Rotation Strategy ETF, and Bitcoin and Ether Equal Weight Strategy ETF shall operate under the new name of Trendwise BTC/ETH and Treasuries Rotation Strategy ETF.
Credit: sec.gov
The new strategy dynamically responds to market trends and volatility with minimal perturbation. It also keeps the focus of its investments on long-term price appreciation.
According to Bitwise CIO Matt Hougan:
“Momentum is a well-established factor in virtually every asset class, and it is powerful in crypto as well. 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.”
Bitwise relies on a proprietary signal of market momentum for crypto assets as its strategy. It includes Bitcoin and Ethereum and is determined by the 10- and 20-day exponential moving averages.
The funds would normally invest in the respective cryptocurrencies as long as the 10-day EMA was above the 20-day EMA-a condition. That indicates upward momentum and can shift to US Treasuries if that happens the other way around. The funds will maintain the current expense ratios and tax treatments. Also, there would not be any action item required to be taken by the existing investors.
Bitwise Wants to Expand Crypto Offerings with XRP ETF
This move adds to an event-filled year 2024 for Bitwise. This year, the company launched its first spot Bitcoin ETP in January and its first Ethereum ETP in July. In August, this world’s largest crypto index fund manager expanded its European presence by acquiring crypto fund provider ETC Group.
Recently, the crypto index fund manager Bitwise filed an S-1 registration with the SEC to offer a spot XRP ETF. Investors, if approved, would see direct exposure to the Ripple Labs crypto token. This would mean further inroads into the mainstream opportunities for crypto investment. The investments would go through regulated financial products in the US market.
The development marks another step in the expansion of crypto investment options. It also fuels optimism about broader access to XRP through a regulated financial product.
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