On October 6, 2024, Bitwise, a crypto asset manager, filed with the US Securities and Exchange Commission (SEC) to convert three futures-based exchange-traded funds (ETFs) into new funds utilizing a "Trendwise strategies" approach. This strategy aims to rotate investments between cryptocurrencies and US Treasuries based on market conditions, optimizing returns while mitigating risks.
The proposed funds will implement Bitwise's proprietary Trendwise rotation strategy, designed to minimize downside volatility and seek long-term capital appreciation. The conversion is expected to take effect around December 3, 2024, with no changes to the funds' expense ratios or tax treatments, ensuring existing investors will not need to take any action.
Matt Hougan, Chief Investment Officer at Bitwise, emphasized the importance of momentum across asset classes, particularly in the volatile crypto market. The Trendwise strategy will utilize a proprietary signal evaluating the 10- and 20-day exponential moving averages (EMA) of Bitcoin and Ethereum prices to determine investment allocations.
As of the announcement, Bitcoin is trading at $61,750, reflecting a 2.5% increase over the past 24 hours, highlighting the ongoing positive momentum in the cryptocurrency market.