Bitwise Asset Management is merging three of its cryptocurrency futures ETFs into a single, momentum-driven fund, according to a recent filing with the U.S. Securities and Exchange Commission (SEC). The new fund, called the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF, will combine 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) into one product.
Set to launch in December, this fund will periodically shift its investments between Bitcoin and Ethereum futures contracts and U.S. Treasuries. The transitions will be based on a proprietary momentum signal, which monitors cryptocurrency price trends using several moving averages. When the signal indicates a rise in prices, the fund increases exposure to Bitcoin and Ethereum futures. If prices are declining, it shifts toward safer assets like U.S. Treasuries.
Bitwise’s move follows its entry into the spot Bitcoin ETF market earlier this year, joining major players like BlackRock and Fidelity after gaining SEC approval. Currently, Bitwise’s spot Bitcoin ETF holds about 39,000 Bitcoin worth $2.3 billion.
The momentum-based strategy behind the new fund aims to reduce volatility and potentially improve returns for investors. “Momentum is a well-established factor in virtually every asset class, and it is powerful in crypto as well,” said Bitwise CIO Matt Hougan in a statement. The fund seeks to “minimize downside volatility and improve risk-adjusted returns.”
While the new ETF can entirely shift its exposure into U.S. Treasuries during downturns, Bitwise emphasizes that there may be periods where the fund holds no Bitcoin futures at all. The fund will charge investors a 0.85% fee, but will not directly invest in digital assets.
Bitwise President Teddy Fusaro noted the company’s dedication to providing innovative investment solutions, adding, “We’re excited to introduce groundbreaking strategies for these three ETFs to give investors more options for accessing the market.”
This consolidation is part of a broader trend in the crypto ETF space, as asset managers have adjusted their strategies in response to the growing popularity of spot-based Bitcoin ETFs.