Bitwise Asset Management has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to convert its three current crypto futures ETF strategies into a new product under the ticker $BITC.
According to the entry, this is aimed at protecting investors from losses while earning stable profits over the long term. If the cryptocurrency market is volatile, the Fund may transfer funds to the U.S. Treasury to protect against losses.
Source: Ministry of National Affairs
This change is scheduled to begin on December 3, 2024. The three ETFs affected are:
The Bitcoin Strategy Optimum Roll ETF will be renamed the Trendwise Bitcoin and Treasurys Rotation Strategy ETF. The Ethereum Strategy ETF will be operated under the new name “Trendwise Ethereum and Treasurys Rotation Strategy ETF.” The Bitcoin and Ether Equal Weight Strategy ETF will also be renamed the Trendwise BTC/ETH and Treasury Rotation Strategy ETF.
Matt Hogan, chief investment officer at Bitwise, said the new strategy uses exponential moving averages (EMAs) to make safer investment decisions. If the 10-day EMA is higher than the 20-day EMA, the fund will focus on cryptocurrencies such as Bitcoin and Ethereum. If the 20-day EMA exceeds the 10-day EMA, the Fund will move its investments into U.S. Treasuries.
The new Trendwise strategy capitalizes on that momentum through a trend-following strategy that rotates crypto and US Treasuries exposure based on market direction. The goal is to minimize downside volatility and potentially improve risk-adjusted returns.
matt hogan
In addition to this, Bitwise has filed with the SEC to launch a new Exchange Traded Product (ETP) for XRP. However, this approval process could take some time due to the ongoing legal dispute between the SEC and Ripple.
