Bitwise files for Bitcoin and Treasuries rotation ETF

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

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

The proposed ETFs will adjust investment exposure based on market conditions, meaning that these funds will invest in crypto when they are trending upwards and rotate into US Treasuries during market downturns.

Bitwise said that the ETF would employ a proprietary signal based on the 10-day and 20-day exponential moving averages (EMAs) of crypto prices. The ETF aims to invest in crypto when the 10-day EMA is above the 20-day EMA, which indicates a positive price trend. Conversely, it will rotate into US Treasuries during downturns to minimize downside volatility.

With the new Trendwise strategies, Bitwise aims to enhance risk-adjusted returns by capitalizing on market momentum while protecting investors during bearish market conditions. The conversion of ETFs is scheduled for December 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. The goal is to help minimize downside volatility and potentially improve risk-adjusted returns,” explained Bitwise.