Bitwise Asset Management Reshapes Crypto ETFs

Bitwise Asset Management plans to reshape its three crypto futures exchange-traded funds (ETFs) by adding Treasuries to reduce volatility.

On Friday, the firm filed changes with the U.S. Securities and Exchange Commission (SEC). The Bitwise Bitcoin Strategy Optimum Roll ETF will convert to the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF. Similarly, the Bitwise Ethereum Strategy ETF and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF will undergo changes. These conversions are anticipated to occur around Dec. 3, 2024.

"The new Trendwise strategies capitalize on that momentum through a trend-following strategy that rotates between crypto and Treasuries exposure based on market direction," stated Bitwise Chief Information Officer Matt Hougan. He added, "The goal is to help minimize downside volatility and potentially improve risk-adjusted returns.”

Earlier this year, Bitwise launched a spot bitcoin ETF in January, followed by a spot Ethereum ETF after receiving SEC approval. Recently, Bitwise has filed a registration statement for a spot XRP ETF, which would be the first of its kind if approved. However, this approval is complicated by ongoing legal challenges, as the SEC is currently in a dispute with Ripple, accusing the company of raising $1.3 billion through the sale of XRP, which the SEC considers an unregistered security.