Bitwise plans to move three of its Bitcoin and Ethereum futures ETFs from their current long-term strategies to strategies alternating between crypto and U.S. Treasuries, according to an October 4 release.
The company’s crypto futures ETFs – including the Bitwise Bitcoin Strategy Optimum Roll ETF (BITC), the Bitwise Ethereum Strategy ETF (AETH), and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP) – will be rebranded as Bitwise Trendwise Bitcoin and Treasury Rollover Strategy ETF (BITC), Bitwise Trendwise Ethereum ETF and Treasury Rollover Strategy (AETH) and Bitwise Trendwise BTC/ETH ETF and Bill Rollover Strategy of the Treasury (BTOP), respectively.
The fund manager expects the adjustment to take place by December 3.
Notably, the move comes the same week the asset manager applied to the U.S. Securities and Exchange Commission (SEC) for a spot XRP ETF.
Bitwise Trendwise ETF
According to the release, these ETFs will adjust their exposure to cryptocurrencies or US Treasuries, depending on market conditions. During positive market trends, they will focus on crypto investments, while during downturns, they will turn to US Treasuries.
Bitwise explained that the Trendwise strategy improves risk-adjusted returns by leveraging market dynamics while providing protection in bearish conditions. The strategy relies on a proprietary signal that monitors the 10- and 20-day exponential moving averages (EMA) of cryptocurrency prices.
So, when the 10-day EMA crosses above the 20-day EMA, signaling upward momentum, funds will invest in crypto. If the situation reverses, the funds will be converted into US Treasury bonds.
Matt Hougan, CIO of Bitwise, explained that this strategy reflects broader trends in asset management. He declared:
“The new Trendwise strategies capitalize on this momentum with a trend-following strategy that alternates between exposure to cryptocurrencies and Treasuries based on market direction. The goal is to help minimize downside volatility and potentially improve risk-adjusted returns.
Meanwhile, Bitcoin market analyst Joe Consorti welcomed the development, saying:
“This is huge news for bitcoin as a macro asset. US Treasury bonds are the preferred asset of all financial institutions around the world. Adding bitcoin to a rotating investment vehicle will increase UST returns and be an attractive diversifier for UST-rich balance sheets.
These changes will not impact expense ratios or the tax treatment of the funds, so existing investors will not need to take any action.
