Bitwise Asset Management is making significant changes to its crypto futures ETFs by incorporating Treasuries in an effort to minimize volatility. The company has filed amendments with the U.S. Securities and Exchange Commission (SEC) on Friday. The Bitwise Bitcoin Strategy Optimum Roll ETF will be transformed into the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF. Similar adaptations will be made to the Bitwise Ethereum Strategy ETF and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF. These conversions are expected to take effect around December 3, 2024, according to Bitwise.
Bitwise's Chief Information Officer, Matt Hougan, stated, "The new Trendwise strategies capitalize on momentum through a trend-following approach that rotates between crypto and Treasuries based on market conditions." The primary objective is to help in reducing downside volatility while potentially enhancing risk-adjusted returns.
Earlier this year, Bitwise launched a spot bitcoin ETF in January, followed by a spot Ethereum ETF after receiving SEC approval. Recently, Bitwise also filed a registration statement for a spot XRP ETF, which would be the first of its kind if approved. However, this approval may face hurdles due to ongoing legal disputes between the SEC and Ripple, which the agency accused of raising $1.3 billion through the unregistered sale of XRP.
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