As a seasoned analyst with a decade of experience in the rapidly evolving world of digital assets, I find the latest move by Bitwise Asset Management both intriguing and promising. Their decision to convert three crypto futures ETFs into strategies that rotate between crypto futures and US Treasuries is a testament to their innovative spirit and their commitment to mitigating risk while fostering long-term growth.
As a researcher, I’m excited to announce that Bitwise Asset Management has recently filed for a conversion of three existing ETFs focusing on crypto futures. Instead of maintaining a long-only strategy, these ETFs will now employ a dynamic approach, rotating between crypto futures and US Treasury bond exposure based on market fluctuations. The new ticker symbol for this innovative product will be $BITC.
The strategy mentioned earlier, designed for minimizing potential losses and promoting sustainable development over the long term, will likely be implemented around December 3, 2024. This timeline is tentative.
Bitwise File For ETF To Rotate Between Crypto and Treasuries
Bitwise has put forth a plan to the SEC for a fresh ETF concentrating on Bitcoin and treasuries. The business is revising the investment approach of its three crypto futures ETFs to cycle between cryptocurrency and US Treasuries using their unique strategy called “Trendwise”. On the specified date, Bitcoin Strategy Optimum Roll ETF will start functioning under the name Trendwise Bitcoin and Treasuries Rotation Strategy ETF (BITC).
The Ethereum Strategy ETF will now be called Trendwise Ethereum and Treasuries Rotation Strategy ETF, while the Bitcoin and Ether Equal Weight Strategy ETF changes to Trendwise BTC/ETH and Treasuries Rotation Strategy ETF. In simpler terms, the names of these exchange-traded funds (ETFs) are being changed. The Ethereum Strategy ETF will now be known as Trendwise Ethereum and Treasuries Rotation Strategy ETF, while the Bitcoin and Ether Equal Weight Strategy ETF is being renamed to Trendwise BTC/ETH and Treasuries Rotation Strategy ETF.
This new approach adapts swiftly to shifts in market conditions and fluctuations, all while causing as little disruption as possible. Moreover, it maintains a primary objective for its investments: achieving long-term growth through increased asset values.
According to Bitwise CIO Matt Hougan:
Momentum plays a significant role across various investment sectors, including cryptocurrencies, and its influence is strong here too. The innovative Trendwise strategies leverage this momentum by adopting a trend-following approach that dynamically adjusts exposure between crypto and Treasuries according to market trends. This strategy aims to reduce downside risk and enhance the potential for better risk-adjusted returns.
Bitwise utilizes an exclusive market trend indicator for cryptocurrencies to guide its investment approach. This strategy encompasses both Bitcoin and Ethereum, which are calculated based on their 10-day and 20-day exponentially weighted moving averages.
Typically, these funds put money into the specified cryptocurrencies whenever the 10-day Exponential Moving Average (EMA) is higher than the 20-day EMA, which suggests positive momentum. However, if this condition reverses, they might switch to U.S. Treasuries instead. The expense ratios and tax treatments will remain unchanged, and existing investors won’t need to take any additional actions.
Bitwise Wants to Expand Crypto Offerings with XRP ETF
2024 has proven to be a bustling year for Bitwise, with several significant milestones achieved. In January, the company debuted its inaugural spot Bitcoin ETP, followed by the introduction of its first Ethereum ETP in July. To further strengthen its European footprint, Bitwise expanded its operations in August by acquiring crypto fund provider ETC Group, making it the world’s largest crypto index fund manager.
Recently, the crypto index fund manager Bitwise filed an S-1 registration with the SEC to offer a spot XRP ETF. Investors, if approved, would see direct exposure to the Ripple Labs crypto token. This would mean further inroads into the mainstream opportunities for crypto investment. The investments would go through regulated financial products in the US market.
This progress signifies another advancement in the broadening array of cryptocurrency investment opportunities. It additionally stirs hope for increased availability of XRP via a financially regulated product.
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2024-10-04 18:06