- Bitwise has filed to convert its crypto futures ETFs to new strategies.
- The asset manager said the new strategies would minimize downside volatility.
- The conversion is expected to occur later this year.
Bitwise has filed to convert its three crypto futures ETFs from long-only strategies to “Trendwise” strategies, according to the asset manager on Friday.
Founded in 2017, Bitwise brands itself as America’s largest crypto index fund manager with “thousands” of financial advisors, family offices, and institutional investors as partners. Today’s development augmented an eventful year for the company, which launched its first spot Bitcoin and Ether ETFs in January and July, respectively.
Bitwise’s “Trendwise” Rotation Strategy
In a press release on October 4, Bitwise said the conversion of its crypto futures exchange-traded funds, including the Bitwise Bitcoin Strategy Optimum Roll ETF (BITC), Bitwise Ethereum Strategy ETF (AETH), and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP), will occur on December 3 this year.
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The newly converted funds will follow the asset manager’s proprietary “Trendwise” rotation strategy. This strategy aims to mitigate downside volatility and achieve long-term price appreciation by spinning out of digital assets and into Treasuries when crypto markets are in “retreat.”
“The strategy follows a proprietary signal that considers the 10- and 20-day exponential moving average (EMA) price of crypto assets like Bitcoin and Ethereum. It generally invests in the funds’ respective crypto assets when the 10-day EMA is above the 20-day EMA—a signal that prices are gaining momentum—and rotates into Treasuries when the reverse is true.” The statement read.Upon conversion, BITC, AETH, and BTOP will change their names and strategies to 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, respectively.
Noting that existing investors in the ETFs didn’t need to take any action, Bitwise said the conversion would not affect the funds’ expense ratios or tax treatments. The company’s president, Teddy Fusaro, asserted that the conversion aimed to give investors more options for accessing the market.
Stay updated on Taiwan’s move to approve overseas crypto ETFs:
Taiwan Approves Foreign Crypto ETFs for Professional Investors
Read about the ongoing Ethereum selling spree:
Ethereum Selling Spree Continues as Whale Dumps $48M
