Bitwise Converts Crypto Futures ETFs to Trendwise Products
A fund issuer has adjusted several crypto ETFs to offer a different exposure type. These are crypto futures funds that had diminished interest with the availability of spot products but now include a new feature.
Bitwise converted three futures-based ETFs into “Trendwise” products that rotate investments between crypto and US Treasurys based on market price trends. The funds will invest in crypto futures when the 10-day exponential moving average of BTC or ETH prices is above the 20-day EMA, indicating price momentum. Conversely, they will switch to Treasurys when the opposite occurs.
This strategy aims to enhance risk-adjusted returns while minimizing downside risk. Bitwise launched its BTC futures ETF in March 2023, followed by an ETH futures offering and a combined BTC and ETH futures contract in October 2023. Recently, the firm announced these strategic adjustments.
These changes are part of ongoing crypto ETF innovations. Several issuers have filed for buffer or covered call strategies after the introduction of bitcoin ETF options. Others aim to introduce new crypto assets such as Solana and XRP into ETF wrappers.
WisdomTree recently published plans for an XRP fund following similar filings by Bitwise, 21Shares, and Canary Capital.
While US spot bitcoin ETFs have attracted significant investments—$31 billion in net inflows since their January launches—the crypto sector is expected to evolve further. Increased investor interest and potentially favorable regulatory oversight may create demand for more specialized products beyond the leading cryptocurrencies.