Bitwise Rethinks Fund Lineup Amid Spot Crypto ETF Surge

Bitwise Asset Management has announced a significant restructuring of its fund offerings, prompted by the recent surge in spot cryptocurrency exchange-traded funds (ETFs). The company will convert three of its futures-based ETFs into a single fund, the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF, set to launch on December 3. This strategic move aims to adapt to changing investor preferences and market dynamics.

Key Takeaways

• Bitwise is merging three futures-based ETFs into one.

• The new fund will alternate between crypto futures and U.S. Treasuries.

• The conversion is scheduled for December 3, with a 0.85% expense ratio.

Background on Bitwise

Bitwise has been a key player in the cryptocurrency investment space, particularly with its introduction of a spot Bitcoin ETF earlier this year, which has attracted approximately $2 billion in assets. However, the launch of spot ETFs for Bitcoin and Ethereum has shifted investor interest away from futures-based products, leading to a decline in the appeal of Bitwise's older offerings.

The New Fund Structure

The newly announced Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF (BITC) will combine the following existing funds:

1. Bitwise Bitcoin Strategy Optm Roll ETF (BITC)

2. Bitwise Ethereum Strategy ETF (AETH)

3. Bitwise Bitcoin and Eth Eq Wgh Str ETF (BTOP)

This new fund will provide investors with a unique strategy that allows for 100% exposure to either crypto futures contracts or U.S. Treasuries, depending on market conditions. This approach aims to mitigate volatility and enhance capital appreciation potential.

Market Response and Analyst Insights

James Seyffart, an ETF analyst at Bloomberg Intelligence, commented on Bitwise's decision, suggesting that the company is responding to feedback from clients who are looking for ways to invest in Bitcoin while minimizing risk. He noted that the new fund's strategy could appeal to investors concerned about downside volatility, a common issue in the crypto market.

Conclusion

As the cryptocurrency landscape continues to evolve, Bitwise's strategic pivot reflects a broader trend among asset managers to adapt to investor preferences. The upcoming launch of the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF could set a new standard for how crypto investments are structured, particularly in a market characterized by rapid changes and increasing competition.

Sources

• Spot Crypto ETFs Prompted Bitwise to Rethink Its Fund Lineup, CoinDesk.

• Los ETFs de criptomonedas al contado llevan a Bitwise a replantear su gama de fondos, CoinDesk.

• Биржевые фонды Криптo побудили Bitwise пересмотреть свою линейку фондов, CoinDesk.

• Hinimok ng Spot Crypto ETF ang Bitwise na Pag-isipang Muli ang Lineup ng Pondo Nito, CoinDesk.

• ETFs de Cripto spot levaram a Bitwise a repensar sua linha de fundos, CoinDesk.