Bitwise Asset Management has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to convert three of its current crypto futures ETFs into a new product under the ticker $BITC.
According to the filling, this is to protect investors from losses while getting steady profits over time. When the crypto market is unstable, the fund can move money into the U.S. Treasury to help protect investors against losses.
The changes are expected to start on December 3, 2024. The three ETFs are:
- Bitcoin Strategy Optimum Roll ETF, which will be renamed as Trendwise Bitcoin and Treasuries Rotation Strategy ETF.
- Ethereum Strategy ETF will operate under a new name Trendwise Ethereum and Treasuries Rotation Strategy ETF.
- Bitcoin and Ether Equal Weight Strategy ETF will also be renamed as Trendwise BTC/ETH and Treasuries Rotation Strategy ETF.
According to Matt Hougan, the Chief Investment Officer at Bitwise, the new strategy will use exponential moving averages (EMA) to decide on a safer investment. If the 10-day EMA is higher than the 20-day EMA, the fund will focus on cryptocurrencies like Bitcoin and Ethereum. If the 20-day EMA overtakes the 10-day EMA, the fund will shift investments to U.S. Treasuries.
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.
Matt Hougan
In addition to this, Bitwise has also filed with the SEC to launch a new exchange-traded product (ETP) for XRP. However, this approval process could take time due to the ongoing legal conflict between SEC and Ripple.
