Bitfiles for Bitcoin and Treasury Rotation ETFs

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Bitwise Asset Management announced today that it has filed to convert its Bitcoin and Ethereum futures ETFs into trend-following strategies that will alternate between crypto exposure and US Treasuries based on market conditions.

As detailed, three of Bitwise’s crypto futures ETFs, including Bitwise Bitcoin Strategy Optimum Roll ETF (BITC), Bitwise Ethereum Strategy ETF (AETH), and Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP), respectively, they will become Bitwise. Trendwise Bitcoin and Treasuries Rotation Strategy ETF, Bitwise Trendwise Ethereum and Treasuries Rotation Strategy ETF, and Bitwise Trendwise BTC/ETH and Treasuries Rotation Strategy ETF.

The proposed ETFs will adjust investment exposure based on the market conditions, that is that these funds will invest in crypto when they want I’m on trend up and rotate into US Treasuries during market downturns.

According to Bitwise, the strategy uses a proprietary signal that analyzes the 10- and 20-day exponential moving average (EMA) of crypto asset prices. When the 10-day EMA is above the 20-day EMA, indicating bullish momentum, ETFs will invest in crypto assets. Conversely, when the 20-day EMA is above the 10-day EMA, suggesting a downtrend, ETFs will rotate into Treasuries.

With the new Trendwise strategies, Bitwise aims to improve risk-adjusted returns by capitalizing on market momentum while protecting investors in bear market conditions.

“The new Trendwise strategies capitalize on this momentum with a trend-following strategy that rotates between crypto and treasury exposure based on market direction. The aim is to help minimize negative volatility and potentially improve risk-adjusted returns,” Bitwise explained.

Existing investors in the funds will not need to take any action and there will be no changes to expense rates or tax treatment, Bitwise said. The conversion of the ETFs is scheduled for December 3, 2024.

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