Bitwise plans to transition three of its Bitcoin and Ethereum futures ETFs from long-only strategies to strategies alternating between crypto and US Treasuries, as per an Oct. 4 statement.
The company’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 be rebranded to the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF (BITC), the Bitwise Trendwise Ethereum and Treasuries Rotation Strategy ETF (AETH), and the Bitwise Trendwise BTC/ETH and Treasuries Rotation Strategy ETF (BTOP), respectively.
The fund manager expects the adjustment to occur by Dec. 3.
This change coincides with Bitwise’s application to the US Securities and Exchange Commission (SEC) for a spot XRP ETF.
Bitwise Trendwise ETFs
These ETFs will modify their exposure to crypto or US Treasuries based on market conditions. During positive market trends, they will emphasize crypto investments, while during downturns, they will switch to US Treasuries.
Bitwise stated that the Trendwise approach enhances risk-adjusted returns by leveraging market momentum and providing protection during bearish phases. The strategy employs a proprietary signal monitoring the 10- and 20-day exponential moving averages (EMA) of crypto prices.
When the 10-day EMA exceeds the 20-day EMA—indicating upward momentum—the funds will invest in crypto. If the situation changes, the funds will rotate into US Treasuries.
Bitwise CIO Matt Hougan explained that this strategy aligns with broader asset management trends, saying:
“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.”
Bitcoin market analyst Joe Consorti praised the development, stating:
“This is massive news for bitcoin as a macro asset. US Treasuries are the preferred asset for all of the world’s financial institutions. Adding bitcoin to a rotating investment vehicle will juice UST returns and be an enticing diversifier for UST-heavy balance sheets.”
These adjustments will not affect the funds’ expense ratios or tax treatment, so current investors do not need to take any action.
