Bitwise Asset Management has rolled out a new exchange-traded fund (ETF) that leverages market trends to facilitate investments in cryptocurrency futures and U.S. Treasury bonds. This innovative product aims to continuously adjust its investments to optimize gains, reflecting current market conditions. The ETF will be identified by the ticker $BITC.
What is the New ETF Strategy?
The newly launched strategy focuses on minimizing losses during unfavorable market conditions while fostering long-term growth. Slated for launch on December 3, 2024, Bitwise has submitted a proposal to the SEC for an ETF that will rotate investments between Bitcoin and Treasuries using a unique methodology dubbed “Trendwise.” This approach seeks to balance the dynamics of cryptocurrency and traditional treasury investments.
How Will the ETF Names Change?
In conjunction with this strategy, Bitwise will rename existing ETFs. The Ethereum Strategy ETF will be rebranded as Trendwise Ethereum and Treasury Rotation Strategy ETF, while the Bitcoin and Ether Equal Weight Strategy ETF will now operate as Trendwise BTC/ETH and Treasury Rotation Strategy ETF. This renaming reflects the focus on dynamically responding to market fluctuations to ensure steady long-term price growth.
Key takeaways from Bitwise’s recent initiatives include:
- Introduction of a trend-following strategy utilizing momentum across asset classes.
- Rebranding existing ETFs to better align with the new strategy.
- Expected operational launch of the ETF on December 3, 2024.
- Continuation of current expense ratios and tax regulations for existing investors.
With a series of strategic moves in 2024, including the launch of new Bitcoin and Ethereum ETPs, Bitwise is positioning itself as a leader in the cryptocurrency investment space. The firm has also filed to establish a spot XRP ETF, which would provide investors direct access to Ripple’s digital currency, following its continued commitment to innovate and expand its product offerings.