Bitwise files for Bitcoin and Treasuries rotation ETF

Key receivers

Bitwise's new ETF strategies rotate between crypto and US Treasuries to manage volatility. Trendwise strategies use a proprietary signal based on the 10 and 20-day EMA of crypto assets.

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Bitwise Asset Management has announced that it has filed with the SEC to change the investment strategies of three existing Bitcoin and Ethereum futures ETFs. Each fund switches to trend-following strategies that involve rotating between crypto and US Treasury exposure based on market conditions.

As detailed, three of Bitwise's crypto futures ETFs, including Bitwise Bitcoin Strategy Optimum Roll ETF (BITC), Bitwise Ethereum Strategy ETF (AETH) and Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP), respectively, will be 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.

The proposed ETFs adjust the investment exposure based on the market Conditions, meaning As these funds are invested in crypto time They are trending. Drive up and into US Treasuries during market downturns.

According to Bitwise, the strategy uses a proprietary signal that analyzes the 10 and 20-day exponential moving average (EMA) of the crypto asset price. When the 10-day EMA is above the 20-day EMA, indicating an uptrend, ETFs invest in crypto assets. Conversely, when the 20-day EMA is above the 10-day EMA, indicating a downtrend, ETFs tend to turn to Treasuries.

With its new Trendwise strategies, Bitwise aims to maximize risk-adjusted returns by capitalizing on market momentum while protecting investors in bearish market conditions.

“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 reduce downside volatility and improve risk-adjusted responses,” Bitwise explained.

Existing investors do not need to take any action, and there will be no changes to expense ratios or tax treatment, Bitwise pointed out. The ETF conversion is scheduled for December 3, 2024.

Data tracked by Farside Investors shows that Bitwise has achieved major milestones this year.

Bitwise recently applied to offer an XRP ETF as part of its mission to provide investors with a diversified investment. options, A bold move due to the ongoing legal battle between Ripple Labs and the SEC.

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