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A fund issuer has adjusted several of its crypto ETFs to cater to those seeking a different type of exposure in the space. These are crypto futures funds that lost some of their luster when spot products became available – but now have a twist.
Bitwise has officially converted three of its futures ETFs into “Trendwise” products that alternate between crypto and U.S. Treasuries based on crypto market price trends.
Essentially, funds will stick to investing in crypto futures when the 10-day exponential moving average of the price of BTC or ETH is above the 20-day EMA (when prices are gaining momentum). magnitude), the company said Tuesday. They would turn into Treasury bonds when the opposite happens.
In other words, strategies take price dynamics into account with the aim of increasing risk-adjusted returns while reducing downside risk.
Bitwise launched its BTC futures ETF in March 2023. It brought to market an ETH futures offering (and one containing both BTC and ETH futures) in October 2023. A year later after this latest launch (only a few weeks ago), the company then revealed these planned adjustments.
Fund strategy changes are some of the latest examples of crypto ETF innovation. As we mentioned previously, a number of issuers have filed applications for so-called buffer strategies or covered calls, for example after the listing of Bitcoin ETF options. Others are looking to integrate new crypto assets (Solana, XRP, etc.) into the ETF wrapper.
WisdomTree released plans for a planned XRP fund on Monday – following Bitwise, 21Shares and Canary Capital.
Although US spot bitcoin ETFs have been the largest asset collectors in the category – with $31 billion in net inflows since their launch in January – the crypto space appears poised to evolve and grow as more more and more investors are coming in (and potentially under the scrutiny of more crypto-friendly regulators). ).
With this, there should be strong demand for more nuanced products and those that focus beyond the largest crypto asset.
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