Bitwise Asset Management, a cryptocurrency specialist,
Asset management seeks to change the strategy from a long-term strategy of cryptocurrency futures ETFs (exchange-traded funds) to one that alternates between cryptocurrencies and U.S. Treasuries depending on market trends.
Cryptocurrency adoption continues to grow as institutional investors like Bitwise gain influence in the market.
The company is moving towards a strategic financial instrument that can respond flexibly to market trends, providing exposure to cryptocurrencies and U.S. Treasuries .
“Bitwise has filed another ETF application. It will be a Treasury-Bitcoin exchange strategy. The ticker will be BITC,” said ETF expert James Seifart.
The transition could take place on or around December 3, 2024, and the fund is expected to change its name and strategy. Specifically:
- BITC, Bitwise Bitcoin Strategy Optimal Roll ETF will be Bitwise Trendwise Bitcoin and Treasury Exchange Strategy ETF.
- AETH, the Bitwise Ethereum Strategy ETF will be converted to the Bitwise Trendwise Ethereum and Treasury Exchange Strategy ETF.
- BTOP, the Bitwise Bitcoin and Ethereum Equal Weight Strategy ETF, will be converted to the Bitwise Trendwise BTC/ETH and Treasury Exchange Strategy ETF.
Read more: What is a Bitcoin ETF?
This ETF uses Bitwise’s proprietary “Trendwise” model to shift investments from cryptocurrencies to government bonds when the crypto market is down, and from government bonds to cryptocurrencies when the crypto market is up. This trend-following strategy has the advantage of achieving long-term price appreciation while minimizing downside volatility.
“We leverage that momentum through a trend-following strategy that swaps between crypto and U.S. Treasury exposure based on emerging trends and market direction. The goal is to minimize downside volatility and improve risk-adjusted returns,” Bitwise CIO Matt Hougan said in a press release.
This strategy utilizes the 10-day and 20-day exponential moving averages (EMAs) of crypto assets such as Bitcoin and Ethereum, and invests in these assets when the 10-day EMA crosses the 20-day EMA, indicating bullish momentum. If the trend reverses, the investment is shifted to Treasury bonds.
Despite these changes, the fund's expense ratio and tax treatment remain unchanged, so existing investors do not need to take any action prior to conversion.
Bitwise is a major player in the crypto industry, offering exposure to Bitcoin and Ethereum through its crypto ETFs, BITB and ETHW. In August, it acquired European crypto fund provider ETC Group and recently filed for an XRP ETP .
Despite these positive developments , Bitwise is now facing a legal challenge . According to BeInCrypto, Vandelay Industries is suing Bitwise and its key executives for financial misconduct and is seeking $2 million in damages. The lawsuit adds a controversial element to an eventful year for the asset management company.
