Bitwise to Launch Bitcoin and Treasuries Rotation Strategy ETF

According to CoinDesk, Bitwise is set to convert three of its futures-based exchange-traded products into a single fund named the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF. This new fund will alternate between 100% exposure to crypto futures contracts and 100% exposure to U.S. Treasuries, depending on market trends. The conversion is scheduled for December 3, as announced by the asset manager.Earlier this year, Bitwise joined the spot bitcoin ETF revolution, introducing a fund that now holds $2 billion in cryptocurrency. However, the subsequent introduction of exchange-traded funds for Ethereum's ether diminished interest in three older Bitwise products that provided bitcoin and ether exposure in a manner now considered less appealing. This led the company to merge these three funds, which held futures contracts tied to the cryptocurrencies, into a single product that incorporates U.S. Treasuries.The new fund, Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF (BITC), combines the Bitwise Bitcoin Strategy Optm Roll ETF (BITC), Bitwise Ethereum Strategy ETF (AETH), and Bitwise Bitcoin and Eth Eq Wgh Str ETF (BTOP). Bitwise stated that the launch of spot bitcoin and ethereum ETFs has made futures-based crypto funds less attractive for investors seeking long-term capital appreciation.With the new fund, Bitwise aims to better manage the volatility of the crypto market by rotating between crypto futures contracts and U.S. Treasuries based on market conditions. James Seyffart, an ETF analyst at Bloomberg Intelligence, noted that Bitwise is likely responding to client feedback and the demand for investment options that limit volatility and downside risks. The success of this strategy will be determined in the coming years, as timing the market remains a challenging endeavor. The new fund will charge investors a 0.85% expense ratio.