An issuer of funds has tweaked several of their crypto-ETFs so that they can accommodate investors who want a more diverse exposure to this space. They’re crypto futures funds that had lost some luster when spot products became available — but now feature a twist.
Bitwise converted 3 of its ETFs based on futures into “Trendwise” Products that are able to rotate crypto-currencies and US Treasurys depending on the crypto market’s price trend.
The company stated that the fund will primarily invest in crypto-futures when the exponential moving 10-day average price of BTC/ETH exceeds the 20 day EMA. (When prices gain momentum) The funds would then switch into Treasurys if the opposite was happening.
To put it another way, these strategies take into account price momentum to increase risk-adjusted profits while reducing the downside risk.
Bitwise released its BTC ETF in march 2023. In October 2023, Bitwise launched an ETH Futures ETF (and also one that held both BTC futures and ETH contracts). These planned modifications were revealed a year following the launches of these products (only a couple weeks back).
These fund changes represent the latest in crypto ETF innovation. We’ve previously written that a few issuers filed for buffer strategies or covered calls, such as after listing bitcoin ETF options. Some issuers are looking to introduce new crypto assets, such as Solana, XRP and others. ETFs can be used to hold cryptoassets (solana, XRP, etc.).
WisdomTree published plans for a planned XRP fund on Monday — following Bitwise, 21Shares and Canary Capital.
Though US spot bitcoin ETFs have been the category’s chief asset gatherers — with $31 billion of net inflows since their January launches — the crypto space appears poised to evolve and grow as more investors come in (and potentially under the oversight of more crypto-friendly regulators).
This should lead to a high demand for nuanced and more focused products.
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