Bitwise Asset Management Reshapes Crypto ETFs

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

The firm filed changes with the U.S. Securities and Exchange Commission (SEC) on Friday. The Bitwise Bitcoin Strategy Optimum Roll ETF will be renamed 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 also undergo changes, expected to take effect on Dec. 3, 2024.

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

Bitwise launched a spot bitcoin ETF in January and later a spot Ethereum ETF after receiving SEC approval. Earlier this week, Bitwise filed a registration statement for a spot XRP ETF, marking a potential first of its kind, pending approval. However, it faces challenges due to the SEC’s legal battle with Ripple, which is accused of raising $1.3 billion through the unregistered sale of XRP.