Bitwise requests opening of three more cryptocurrency ETFs
Bitwise Asset Management has registered a new ETF – and this time, in the form of a combo. According to the application submitted to the United States Securities and Exchange Commission (SEC), the objective is to convert three cryptocurrency futures ETFs.
The funds currently only have a futures purchasing strategy, but Bitwise wants to transform them into mixed funds. With this, the manager's objective is to allow both the purchase of cryptocurrency futures and exposure to US Treasury bonds. The ticker will be $BITC.
According to Bitwise, the objective is to merge the three ETFs, change the strategy and concentrate them all in BITC. The combination of futures and Treasury bonds aims to reduce downside risk and promote long-term growth. If the SEC approves the new fund, it will take effect by December 3, 2024.
Cryptocurrency ETFs and Treasury Bonds
Bitwise therefore submitted a proposal to the SEC for a new ETF focused on Bitcoin and Treasury bonds. The company is revamping the investment strategy of its three cryptocurrency futures ETFs to pivot between cryptocurrencies and U.S. Treasury bonds.
The Bitcoin Strategy Optimum Roll ETF fund will begin operating under the Trendwise Bitcoin and Treasuries Rotation Strategy ETF (BITC). The second change will occur in the Ethereum Strategy ETF, which will be called Trendwise Ethereum and Treasuries Rotation Strategy ETF.
Finally, the third modified fund is the Bitcoin and Ether Equal Weight Strategy ETF. After approval from the SEC, the fund will be called Trendwise BTC/ETH and Treasuries Rotation Strategy ETF.
In short, one fund will have a mix of BTC and bonds, while the other will have ETH and bonds. The third fund will bring together futures backed by the two cryptocurrencies – and Treasury bonds.
“Momentum is a well-established factor in virtually all asset classes and is also powerful in crypto. Trendwise's new strategies capitalize on this momentum through a trend-following strategy that pivots between exposure to crypto and Treasuries based on market direction. The goal is to help minimize downside volatility and potentially improve risk-adjusted returns,” said Bitwise CIO Matt Hougan.
Expansion of new Bitwise funds
This change adds to a year 2024 full of important events for Bitwise. In a space of seven months between January and July, the manager placed its Bitcoin and Ethereum ETFs on the market.
In August, the world's largest cryptocurrency index fund manager expanded its European presence by acquiring cryptocurrency fund provider ETC Group. Last month, the manager filed an S-1 registration with the SEC to offer an XRP ETF.
The ETF will invest directly in XRP, giving investors direct exposure to the Ripple Labs token. This would mean more forays into top cryptocurrency investment opportunities. Investments would go through financial products regulated in the US market.