Bitwise to Launch New ETF Strategy Rotating Between Crypto and U.S. Treasuries
Bitwise Asset Management is seeking to adjust its investment strategies for three of its crypto futures ETFs.
The firm plans to switch from long-only strategies to a dynamic approach that alternates between crypto futures and U.S. Treasuries based on market conditions. The new strategy, called “Trendwise,” will take effect around December 3, 2024, and will reduce risk while aiming for long-term growth.
The affected funds include the Bitcoin Strategy Optimum Roll ETF, which will be renamed as Trendwise Bitcoin and Treasuries Rotation Strategy ETF, and similar changes will be applied to its Ethereum and Bitcoin-Ethereum ETFs.
Bitwise’s Chief Investment Officer, Matt Hougan, emphasized that the strategy relies on momentum signals driven by the 10- and 20-day exponential moving averages.
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The funds will shift investments between crypto and Treasuries depending on the direction of these trends. The goal is to manage volatility while potentially enhancing returns. Existing investors won’t need to take any action, and the current expense ratios will remain unchanged.
In addition to this update, Bitwise has also filed with the SEC to introduce a spot XRP ETF. This marks a major step in expanding crypto investment options, adding to its recent launches of spot Bitcoin and Ethereum products earlier in the year. If approved, this new ETF will provide direct exposure to Ripple’s XRP token, offering further legitimacy to crypto investments through regulated financial products.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
