- Bitwise plans to rotate three crypto futures ETFs between cryptocurrency and U.S. Treasuries based on market momentum signals.
- The new Trendwise strategy, effective December 3, 2024, will help reduce volatility and focus on long-term growth for investors.
- Bitwise recently filed with the SEC for a spot XRP ETF, marking another step in regulated crypto investment expansion.
Bitwise Asset Management has filed with the U.S. Securities and Exchange Commission (SEC) to convert three of its existing crypto futures ETFs to a new rotation strategy. The move aims to balance exposure between cryptocurrency futures and U.S. Treasuries based on market trends.
Notably, this adjustment will help manage downside risks and focus on long-term growth. If approved, this strategy is expected to take effect on December 3, 2024, under the new ETF ticker $BITC.
Introducing Trendwise: A New Investment Strategy
Consequently, the updated investment strategy, called “Trendwise,” is designed to dynamically rotate between cryptocurrency and Treasuries, responding to market volatility. Bitwise plans to rename its three crypto futures ETFs to reflect this change. The Bitcoin Strategy Optimum Roll ETF will be rebranded as the Trendwise Bitcoin and Treasuries Rotation Strategy ETF.
Furthermore, the Ethereum Strategy ETF will become the Trendwise Ethereum and Treasuries Rotation Strategy ETF, while the Bitcoin and Ether Equal Weight Strategy ETF will operate under the name Trendwise BTC/ETH and Treasuries Rotation Strategy ETF.
In addition, the strategy relies on Bitwise’s proprietary market momentum signals, which are based on the 10- and 20-day exponential moving averages (EMA) of crypto assets. When the 10-day EMA moves above the 20-day EMA, the ETFs will maintain exposure to cryptocurrency. However, if the reverse occurs, the funds will shift their focus toward U.S. Treasuries, helping to mitigate risk.
Focus on Risk Management and Long-Term Growth
Notably, Bitwise’s proposed changes aim to reduce volatility for investors and foster long-term price appreciation. The ETFs will maintain their current expense ratios and tax treatments, and investors will not need to take any action to adapt to the new strategy.
Additionally, this latest initiative adds to a busy year for Bitwise, which launched its first spot Bitcoin ETP in January and its first Ethereum ETP in July. In August, the company expanded its European presence by acquiring crypto fund provider ETC Group.
Moreover, Bitwise has recently filed an S-1 registration with the SEC for a spot XRP ETF, signaling the company’s continued push for greater access to regulated crypto investment products.
Hence, this development highlights Bitwise’s commitment to offering diverse and regulated financial products in the U.S. market, giving investors broader opportunities to gain exposure to cryptocurrency through traditional financial channels.
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