Bitwise revamps three of its crypto futures ETFs to rotate in Treasuries in an effort to curb volatility

Bitwise Asset Management plans to reshape its three crypto futures exchange-traded funds by adding Treasuries to the mix in an effort to curtail volatility.

The firm filed changes to those ETFs with the U.S. Securities and Exchange Commission on Friday. The Bitwise Bitcoin BTC +2.38% Strategy Optimum Roll ETF will convert to the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF. The Bitwise Ethereum Strategy ETF and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF will similarly be changed. Those conversions are expected to happen around Dec. 3, 2024, Bitwise said.

"The new Trendwise strategies capitalize on that momentum through a trend-following strategy that rotates between crypto and Treasuries exposure based on market direction," said Bitwise Chief Information Officer Matt Hougan in a statement . "The goal is to help minimize downside volatility and potentially improve risk-adjusted returns.”

Bitwise launched a spot bitcoin ETF in January and then later its spot Ethereum ETF after getting approval from the SEC. Earlier this week, Bitwise filed with the SEC a registration statement for a spot XRP ETF, which would mark the first of its kind if approved. That approval faces challenges since the SEC has been embroiled in a legal fight with Ripple after the agency accused the company of raising $1.3 billion through the sale of XRP, which it views as an unregistered security.