The new BITC ETF will use an “optimal roll” strategy to focus on long-term returns for investors.
Bitwise Asset Management, Creator of Bitwise Crypto Industry Innovators ETF and Bitwise Web3 ETF, has introduced the new “Bitwise Bitcoin Strategy Optimum Roll ETF” under the BITC ticker.
According to the press release, the fund “was built to offer regulated, professionally managed investors exposure to bitcoin with a unique design that reduces the price inefficiencies that can arise in bitcoin-related ETFs that focus on futures or near-month contracts.” The ETF aims to overcome this by using what it describes as an “optimal rollover strategy that considers all available contracts and intelligently selects the contract with the lowest contango rate (or the highest withdrawal rate) in an effort to maximize long-term returns.” ”
Bitwise CIO Matt Hougan explains why this particular structure was chosen.
“Historically, the optimal rotation strategy in other asset classes, such as oil and natural gas futures, has outperformed strategies focused on forward-month or near-month contracts over time,” he said. “We believe the same strategy can be applied to the bitcoin futures market as it continues to grow and develop.”
In addition, structuring the fund as an SEC-regulated ETF will make exposure to bitcoin available in a format “preferred by financial professionals,” according to the press release, citing research by Bitwise and VettaFi that explores the attitude of financial advisors to crypto that finds ETFs similar. the preferred way to invest for 68% of advisers.
“If there’s anything this past year has reinforced, it’s how you invest in crypto as important as what you invest in,” Bitwise CEO Hunter Horsley reiterated. “Bitwise Bitcoin Strategy Optimum Roll ETF provides institutions, advisors, and clients with a structured professional solution to increase exposure to bitcoin returns while bypassing the risk of holding bitcoin directly or investing through novel platforms.”
The BITC ETF’s custodian is BNY Mellon and the fund’s distributor is Foreside Fund Services, LLC.
It should be noted that holding Bitcoin futures ETFs does not introduce third-party risks that are not present for those who hold bitcoins in their own wallets.