Bitwise Asset Management is making significant changes to its three crypto futures exchange-traded funds (ETFs) to incorporate Treasuries and reduce volatility.
The firm filed amendments with the U.S. Securities and Exchange Commission (SEC) on Friday to modify the Bitwise Bitcoin Strategy Optimum Roll ETF, the Bitwise Ethereum Strategy ETF, and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF.
The revamped ETFs, expected to take effect around December 3, 2024, will employ a trend-following strategy that rotates between crypto and Treasury exposure based on market conditions. According to Bitwise Chief Information Officer Matt Hougan, the goal is to minimize downside volatility and potentially enhance risk-adjusted returns.
This move comes on the heels of Bitwise securing approval for its spot bitcoin and Ethereum ETFs earlier this year. The firm has also recently filed with the SEC for a spot XRP ETF, which, if approved, would be the first of its kind. However, the approval of the XRP ETF faces challenges due to the ongoing legal battle between the SEC and Ripple over the classification of XRP as a security.
