Bitwise Plans to move three of its Bitcoin You can also find out more about the following: Ethereum A report from Oct. 4 suggests that futures ETFs switch their long-only strategies into ones which alternate crypto with US Treasuries. 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.
Fund manager anticipates that the adjustments will occur on or before December 3.
This move is notable because it comes the same week as the US Securities and Exchange Commission’s (SEC) application for an asset manager. spot XRP ETF.
Bitwise Trendwise ETFs
These ETFs, according to the announcement, will change their exposure depending on market conditions to either crypto or US Treasuries. They will concentrate on investing in crypto during positive trends and shift their focus to US Treasuries when the market is down.
Bitwise explained how the Trendwise strategy increases risk-adjusted return by using market momentum to increase returns, while also offering protection when conditions are bearish. This strategy uses a proprietary system that measures the 10 and 20 day exponential moving trends (EMAs) of crypto-price.
So, when the 10-day EMA surpasses the 20-day EMA—signaling upward momentum—the funds will invest in crypto. In the event that the trend reverses, funds will be invested in US Treasuries.
Matt Hougan, CIO at Bitwise explained that the strategy was a reflection on broader asset management trends. He declared:
“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 also praised the new 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.”
The changes do not affect current fund investors’ tax or expense treatment.
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Source: cryptoslate.com