Bitwise Introduces Trendwise Strategies for Crypto ETFs
Bitwise Asset Management has made a significant advance in cryptocurrency investing with the launch of its Trendwise strategies. This innovative approach transforms three existing crypto futures ETFs into dynamic investments that not only target exposure to Bitcoin and Ethereum but also feature a smart rotation mechanism between these cryptocurrencies and U.S. Treasuries. The goal? To provide investors with improved risk-adjusted returns.
Understanding the Trendwise Strategies
Investors can now engage with the new Trendwise strategies through Bitwise’s rebranded ETFs, which have adopted names that reflect their fresh direction. These funds are:
New Fund Names
- BITC: The Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF
- AETH: The Bitwise Trendwise Ethereum and Treasuries Rotation Strategy ETF
- BTOP: The Bitwise Trendwise BTC/ETH and Treasuries Rotation Strategy ETF
Mechanics of the Trendwise Strategy
The innovation behind Trendwise lies in its proprietary signal, which leverages both the 10- and 20-day exponential moving average (EMA) prices of Bitcoin and Ethereum. Under this strategy, the ETFs will invest in crypto futures when the 10-day EMA surpasses the 20-day EMA—a clear indication of upward price momentum—and will shift into U.S. Treasuries during bearish market conditions.
Investors Can Expect Greater Flexibility
According to Matt Hougan, Chief Investment Officer at Bitwise, clients have consistently expressed a desire for intelligent investment options in the cryptocurrency domain. The new Trendwise strategies embrace this momentum concept widely recognized in the investment community as a means to potentially amplify risk-adjusted returns while mitigating downside risks. He shares, “We are thrilled to unveil these innovative strategies.”
Maintaining Cost Efficiency for Investors
Importantly, while the investment strategies are evolving, the expense ratios for the funds will remain static at 0.85%. Additionally, there will be no alterations to the funds’ tax treatments. Existing investors can relax; their investments will transition to the new strategies without any required action on their part.
Bitwise's Ongoing Commitment to Innovation
Bitwise is committed to continuously enhancing its offerings to meet evolving market demands. As stated by Teddy Fusaro, President of Bitwise, “The crypto asset class is burgeoning, and there are various avenues through which investors wish to engage.” The introduction of these sophisticated strategies exemplifies the firm’s dedication to providing its clientele with diverse and effective market entry options.
The launch of Trendwise is part of an eventful year for Bitwise, marked by the successful introduction of its inaugural spot Bitcoin and Ethereum ETPs. The firm further expanded its portfolio by acquiring the European crypto fund provider ETC Group and filing for a spot XRP ETP.
About Bitwise Asset Management
Founded in 2017, Bitwise Asset Management is a leading player in the cryptocurrency investment sector, offering comprehensive educational resources alongside various investment products, including ETFs, private funds, and active investment solutions. The firm serves thousands of investment professionals and financial institutions aiming to navigate the complexities of digital assets.
Frequently Asked Questions
What are the new names for the Bitwise ETFs?
The ETFs have been renamed to BITC, AETH, and BTOP, reflecting their new strategies.
How does the Trendwise strategy work?
The Trendwise strategy utilizes the 10- and 20-day EMAs to identify price momentum in Bitcoin and Ethereum, adjusting investments accordingly.
Will the expense ratios change for the funds?
No, the expense ratios will remain at 0.85% even with the introduction of the new strategies.
Do current investors need to take action?
No action is required from existing investors; their funds will automatically convert to follow the new strategies.
What other innovations has Bitwise introduced in 2024?
In 2024, Bitwise launched its first spot Bitcoin and Ethereum ETPs and acquired the ETC Group, expanding its reach in the crypto asset market.
