According to Blockworks, Bitwise converted three futures ETFs into "Trendwise" products, rotating between crypto futures and U.S. Treasuries based on crypto market price trends. If the 10-day EMA of BTC or ETH is higher than the 20-day EMA, the fund will invest in crypto futures; otherwise, it will turn to Treasuries. This strategy aims to increase risk-adjusted returns and reduce downside risk.
Bitwise will launch a BTC futures ETF in March 2023 and an ETH futures ETF and combination products in October 2023. The recently announced strategy adjustment is the latest example of innovation in crypto ETFs. Although U.S. spot Bitcoin ETFs have attracted $31 billion in net inflows since January, demand for more complex products is expected to increase as more investors enter the market.
