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Bitwise Files for Another ETF Following XRP ETF Filing
Bitwise, a leading crypto index fund manager, has filed for a new ETF that would allow investors to gain exposure to Bitcoin and Treasuries. The new strategy, called "Trendwise," would rotate between crypto futures and US Treasuries based on market trends.
The proposed ETF, which would be called the Trendwise Bitcoin and Treasuries Rotation Strategy ETF (BITC), would be an actively managed fund that would aim to minimize downside risk and generate long-term growth. Bitwise has filed a proposed rule change with the SEC to list the ETF on the NYSE Arca.
New Strategy Highlights
The Trendwise strategy would use a proprietary signal of market momentum for crypto assets to determine when to rotate between Bitcoin and Treasuries. The signal would be based on the 10- and 20-day exponential moving averages of Bitcoin and Ethereum prices.
How the Strategy Works
When the 10-day EMA is above the 20-day EMA, the strategy would buy Bitcoin and sell Treasuries. Conversely, when the 10-day EMA is below the 20-day EMA, the strategy would sell Bitcoin and buy Treasuries. The strategy would seek to capture the momentum and trend of the crypto markets while minimizing exposure to treasuries during periods of high volatility.
Long-Term Focus
Bitwise’s CIO, Matt Hougan, emphasizes the importance of a long-term focus in the current market environment. "Momentum is a well-established factor in virtually every asset class, and it’s powerful in crypto as well," he said. "The new Trendwise strategies capitalize on that momentum through a trend-following strategy that rotates between crypto and Treasuries exposure based on market direction."
Existing ETFs to Rebrand
The filing follows the company’s recent filings for three crypto futures ETFs, which would have their investment strategies rebranded to incorporate the new Trendwise strategy. These ETFs would be the Trendwise Bitcoin and Treasuries Rotation Strategy ETF (BITC), Trendwise Ethereum and Treasuries Rotation Strategy ETF (ETHE), and the Trendwise BTC/ETH and Treasuries Rotation Strategy ETF (BTSE).
XRP ETF Filing
In recent news, Bitwise has also filed for a Spot XRP ETF, which would allow investors to buy and hold XRP on a regulated exchange. If approved, this would mark a significant milestone for crypto ETFs and provide broader access to XRP trading.
Conclusion
In conclusion, Bitwise’s proposed ETF filing marks another significant step in the growth of the crypto ETF industry. The Trendwise strategy offers a unique approach to managing risk and generating long-term growth in the cryptocurrency market. As the investment landscape continues to evolve, it will be interesting to see how Bitwise and other crypto ETF providers shape the future of digital assets.
FAQs
Q: What is the Trendwise strategy?
A: The Trendwise strategy is a proprietary signal that rotates between crypto futures and US Treasuries based on market trends.
Q: How does the Trendwise strategy work?
A: The strategy uses 10- and 20-day exponential moving averages of Bitcoin and Ethereum prices to determine when to rotate between crypto futures and US Treasuries.
Q: What are the benefits of the Trendwise strategy?
A: The strategy seeks to minimize downside risk and generate long-term growth, while also providing exposure to the crypto market.
Q: How does the strategy handle market volatility?
A: The strategy uses moving averages to determine when to rotate between crypto futures and US Treasuries, which helps to minimize exposure to treasuries during periods of high volatility.
