Spot Crypto ETFs Led Bitwise to Revamp Its Fund Offerings

Bitwise has decided to rethink its fund offerings in response to the growing popularity of spot crypto ETFs, which have made futures-based crypto products less attractive. The asset manager announced that it will merge three of its existing futures-based ETFs into a single fund, called the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF. This new fund will alternate between full exposure to crypto futures contracts and U.S. Treasuries, depending on market conditions.

The shift comes after Bitwise and other firms launched spot bitcoin ETFs earlier this year, which have garnered significant investor interest, reducing the appeal of futures-based products. Bitwise's new approach aims to manage the volatility of the crypto market, offering an option for investors seeking exposure to bitcoin while minimizing downside risks.

The conversion of the funds will occur on December 3, with the new fund carrying an expense ratio of 0.85%. While this strategy caters to investor concerns about volatility, only time will tell if it proves successful in the long term.