Asset manager Bitwise is liquidating three futures-based crypto ETFs, with plans to fold the offerings into a single offering in December, it said. Documents It filed with the US Securities and Exchange Commission (SEC) on Friday.
Dubbed the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF, the fund's strategy involves regularly switching exposure between them. Bitcoin and Ethereum future Contracts and assets such as US Treasuries. Those changes were prompted by a “proprietary token” organization. he said.This applies to multiple moving averages for cryptocurrency prices.
The new fund combines Bitwise Bitcoin Strategy Optimum Roll ETF (BITC), Bitwise Ethereum Strategy ETF (AETH) and Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP).
The proposed conversion follows Bitwise's entry into the Bitcoin ETF space alongside financial titans such as BlackRock and Fidelity following SEC approval. Currently, the Bitwise Bitcoin ETF holds approximately 39,000 bitcoins worth $2.3 billion, according to CoinGlass. Data.
The fund takes a bullish approach to investing in Bitcoin and Ethereum futures. The fund will gain crypto exposure as the fund seeks refuge in government debt when the Bitwise signal indicates that “prices are on the rise.”
“Momentum is well-established across all asset classes, and it's powerful in crypto as well,” Bitwise CIO Matt Hougan said in a statement. press releaseThe goal of the new fund is to “help reduce lateral volatility and improve risk-adjusted responses,” he added.
Following the launch of the Ethereum ETF in July, Bitwise continues to position itself as a funder, giving investors access to crypto through traditional brokerage accounts. Bitwise one earlier this week Industry-first application XRP ETF for one location in the US
The first futures-based crypto ETF was approved three years ago, when regulators gave ProShares' Bitcoin Trust a Green light. But since the introduction of location-based options, several asset managers have adapted future-based offerings.
For example, Van Eyck said last month. Liquid The future investment product for Ethereum. The firm cited investor interest and liquidity as factors in deciding the move.
Bitwise's new fund will charge investors a payout ratio of 0.85%, and the prospectus makes it clear that it will not invest directly in digital assets. Because the fund may shift its exposure entirely to US Treasuries, Bitwise said, “there will be periods—and possibly extended periods—when the fund has no exposure to Bitcoin futures contracts.”
While Bitwise listed the “limited operating history” of its three currencies as a risk, Bitwise President Teddy Fusaro said in a statement that the company is breaking new ground with the product.
“At Bitwise, we believe there are many different ways investors want to gain access to this new and emerging asset class,” he said. We are excited to introduce new infrastructure for these three ETFs to give investors more options to access the market.
Edited by Andrew Hayward.
Daily Debrief Newspaper
Start each day with top news stories, plus original features, podcasts, videos and more.
