Bitwise, a prominent asset manager, is making a strategic shift in its fund lineup by converting three of its futures-based exchange-traded products into a single fund. The new fund, known as the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF, will alternate between 100% exposure to crypto futures contracts and 100% exposure to U.S. Treasuries. This move is aimed at better managing the volatility of the crypto market.
The decision to merge the three older Bitwise products into a single fund comes after the introduction of spot bitcoin and Ethereum ETFs earlier this year, which garnered significant investor interest. The older products, which provided exposure to bitcoin and ether through futures contracts, were no longer as appealing in comparison. By consolidating these funds into a single product that incorporates U.S. Treasuries, Bitwise is adapting to the evolving preferences of investors seeking long-term capital appreciation.
The new Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF combines the Bitwise Bitcoin Strategy Optm Roll ETF, Bitwise Ethereum Strategy ETF, and Bitwise Bitcoin and Eth Eq Wgh Str ETF. This shift reflects Bitwise’s proactive approach to meeting the changing needs of its clients and potential investors. The fund will offer a unique investment strategy that aims to limit volatility and downside risks associated with crypto investments.
ETF analyst James Seyffart noted that Bitwise’s decision to introduce this new fund may be in response to feedback from clients who are interested in bitcoin but are cautious about market volatility. By incorporating U.S. Treasuries into the fund and actively managing the rotation between crypto futures contracts and Treasuries, Bitwise is seeking to provide a more stable investment option for those looking to enter the crypto market.
The conversion of the funds is scheduled to take place on December 3, with the new fund carrying a 0.85% expense ratio for investors. While the success of this new investment approach remains to be seen, it represents Bitwise’s commitment to innovation and responsiveness to market trends.
In conclusion, Bitwise’s shift towards the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF underscores the dynamic nature of the cryptocurrency market and the importance of adapting investment strategies to meet evolving investor preferences. By offering a diversified fund that combines exposure to crypto assets with U.S. Treasuries, Bitwise is positioning itself to cater to a broader range of investors seeking to navigate the complexities of the crypto market.