Bitwise Combines Bitcoin & Ethereum ETFs into ‘Momentum’ Fund

### Discover the New Bitwise Momentum Fund

Asset manager Bitwise is innovating by combining its Bitcoin and Ethereum ETFs into a ‘Momentum’ fund, as indicated in [recent filings](https://www.sec.gov/Archives/edgar/data/1928561/000199937124012943/bitwise_485apos-100424.htm) with the U.S. Securities and Exchange Commission (SEC). This strategic move aims to streamline its crypto offerings by December, marking a significant shift in their investment strategy.

### The Mechanics Behind Bitwise’s Bitcoin and Ethereum ETFs

The newly proposed fund, named the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF, will periodically adjust its exposure between Bitcoin and Ethereum futures contracts, and U.S. Treasuries. This adjustment is based on a proprietary signal from Bitwise, which evaluates various cryptocurrency price moving averages. This innovative approach will merge the Bitwise Bitcoin Strategy Optimum Roll ETF (BITC), the Bitwise Ethereum Strategy ETF (AETH), and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP).

### Entering the Momentum Game

Bitwise’s foray into the spot Bitcoin ETF sector began in January when they joined other financial powerhouses like BlackRock and Fidelity. As of now, Bitwise’s Bitcoin ETF reportedly holds nearly 39,000 Bitcoin, valued at about $2.3 billion according to [CoinGlass](https://www.coinglass.com/bitcoin-etf). Their momentum-driven strategy means the fund increases exposure to cryptocurrencies when market prices show upward momentum, while transitioning into government securities during downturns.

### A Tactical Shift for Investors

Matt Hougan, Bitwise’s CIO, underscores the power of momentum, stating in a [press release](https://www.businesswire.com/news/home/20241004639469/en/Bitwise-Files-To-Convert-Three-Futures-Based-ETFs-to-New-%E2%80%9CTrendwise%E2%80%9D-Strategies), “Momentum is a well-established factor in virtually every asset class and is impactful in crypto as well.” This strategy is designed to cushion downside volatility while enhancing risk-adjusted returns.

### Expanding Options with Bitwise

Bitwise has been making consistent advances following July’s launch of its spot Ethereum ETF. This strategy positions them as a leader for investors accessing cryptocurrency through traditional brokerage platforms. Moreover, Bitwise recently applied for a groundbreaking spot XRP ETF, indicating their commitment to expanding market access. Additionally, as the first futures-based crypto ETF was approved years ago, significant updates have been made to calibrate products in response to the growing demand for spot-based alternatives.

With a fee ratio of 0.85%, the new fund doesn’t directly invest in digital assets but retains flexibility with U.S. Treasuries. While Bitwise acknowledges the limited operating history of its three funds as a potential risk, Bitwise President Teddy Fusaro emphasizes the groundbreaking nature of this initiative. “At Bitwise, we’re thrilled to provide investors more avenues for accessing the crypto market with innovative strategies,” says Fusaro.

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Edited by Andrew Hayward