Bitwise Asset Management has announced plans to convert its three existing cryptocurrency futures ETFs. According to a press release, these ETFs will shift from their current long-only strategies to a dynamic approach that rotates between cryptocurrency and U.S. Treasuries based on market conditions.
Bitwise to Implement Trendwise Rotation Strategy
Notably, this conversion is expected to occur on or around December 3, 2024. The new strategy will be implemented using Bitwise’s proprietary “Trendwise Rotation Strategy.” The strategy balances risk and returns by adjusting exposure between crypto assets and Treasuries. The three ETFs undergoing conversion will also see a rebranding, reflecting their new dual-exposure strategies.
The first fund listed under the ticker BITC will be renamed the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF. Similarly, the AETH fund will be rebranded as the Bitwise Trendwise Ethereum and Treasuries Rotation Strategy ETF. This fund will manage its exposure to Ethereum futures alongside Treasuries, adjusting allocations based on market momentum and trends.
This investment strategy allows investors to benefit from Ethereum’s potential gains while reducing losses by switching to Treasuries when market conditions are less favorable. Furthermore, the BTOP fund will transition to the Bitwise Trendwise BTC/ETH and Treasuries Rotation Strategy ETF. These conversions reflect Bitwise’s continued commitment to providing dynamic, forward-thinking investment solutions in the ever-evolving crypto market.
Bitwise Files for Spot XRP ETF
Meanwhile, this new filing comes a few days after Bitwise filed for a spot XRP ETF. According to the S-1 filing with the SEC, the proposed WTF would track the value of XRP, one of the largest cryptocurrencies by market capitalization. In the filing, Bitwise mentioned that BNY Mellon, one of the world’s leading financial institutions, will be the trust administrator. This indicates Bitiwse’s effort to ensure robust oversight and credibility for the proposed ETF.
Additionally, Coinbase Custody Trust Company, LLC, a subsidiary of Coinbase, will be responsible for the custody of the XRP ETF. Undoubtedly, the outcome of this filing could have significant implications for Bitwise and the broader cryptocurrency industry. If approved, the spot XRP ETF would provide retail and institutional investors with a regulated vehicle to gain exposure to XRP.
Bitwise Investment Funds Gains Traction
Bitwise’s spot Bitcoin ETF has witnessed a significant $2 billion influx of investor funds within the past seven months. It offers a lower management fee of 0.20%. BITB has been trading in close alignment with Bitcoin, with a discount or premium to NAV hovering around 0%.
This has recently caused the firm’s Bitcoin and Ethereum ETFs to attract a surge of capital from a large Registered Investment Advisor (RIA). Despite Bitwise’s impressive records in the crypto market, its performance and that of other crypto asset managers has been overshadowed by BlackRock’s iShares Bitcoin Trust (IBIT).
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