A new Bitcoin-linked ETF is launched by Bitwise: BITC

The Bitwise Bitcoin Strategy Optimuwm Roll ETF (bitwise: BITC) is one of the world's leading crypto asset managers, and it was launched today by Bitwise Asset Management, one of the world's leading crypto asset managers. In creating this fund, we were aiming to provide investors with a regulated and professionally managed exposure to bitcoin. Our fund is designed to minimize pricing inefficiencies that can arise in bitcoin-linked exchange traded funds focusing on future contracts in the short-term and long-term.

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In a recent study, it has been shown that traders with a short time horizon can benefit greatly from using a front-month methodology, but it can also lead to significant roll costs which may adversely affect long-term performance. In order to overcome this challenge, BITC has developed a “optimal roll” strategy in which all contracts are considered and intelligently selected with the lowest level of contango (or the highest level of backwardation) for the purpose of maximising the long-term return.2

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As Bitwise CIO Matt Hougan pointed out, optimum roll strategies have traditionally outperformed strategies focusing on front-month or near-month contracts in other asset classes, such as oil and natural gas futures, for a long time. In our opinion, the same strategy can also be applied to bitcoin futures, as the market continues to grow and develop. I am excited to announce the launch of Bitwise Bitcoin Strategy Optimum Roll ETF as a regulated vehicle to provide investors with long-term exposure to bitcoin and the ability to access a directional portfolio."

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The fund will also be able to provide exposure to bitcoin in a format that is widely favored by financial professionals because it will be a SEC-regulated, “1940 Act” ETF. It has been reported by Bitwise/VettaFi that 68% of financial advisors prefer to invest in cryptocurrency through exchange-traded funds, according to a recent survey by Bitwise/VettaFi. For tax reporting purposes, as an alternative to the traditionally longer and more complex Form K-1, the fund will issue a Form 1099.

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“If there's anything that this past year has reinforced, it's that how you invest in crypto is as important as what you invest in,” said Bitwise CEO Hunter Horsley. Bitwise Bitcoin Strategy Optimum Roll ETF offers institutions, advisors, and their clients the chance to gain exposure to bitcoin returns by using a professional, regulated ETF, without taking on the risks of directly custodying bitcoins or investing through novel platforms.”

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It is held by BNY Mellon as the custodian of the Bitwise Bitcoin Strategy Optimum Roll ETF, and Foreside Fund Services, LLC is the distributor of the fund. The fund is rebalanced monthly by the custodian.

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As part of the Bitwise suite of professional investment products, Bitwise has launched the Bitwise Bitcoin Strategy Optimum Roll ETF (ticker: BITC) as a way for investors to take advantage of the opportunities presented by the rapidly growing crypto market. As of today, Bitwise offers a range of over 20 products, including Bitwise Crypto Industry Innovators ETF, Bitwise Web3 ETF, Bitwise 10 Crypto Index Fund, private placement funds, multi-strategy solutions, and separate investment accounts. Bitwise has partnered with over 1,500 firms in 2022, doubling the number of independent investment advisors and financial advisors, family offices, and institutions that depend on Bitwise for their clients' crypto exposures. These firms benefit from Bitwise's nationwide distribution and client service teams for the support they need to navigate crypto.

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A new Bitcoin-linked ETF, BITC, has been launched by Bitwise, aimed at long-term investors, according to the company. Through a selective investment in bitcoin futures across the entire curve of bitcoin futures, the strategy seeks to mitigate contango for long-term investors by making use of decades of research on commodity pricing on cryptocurrency.

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The Bitwise Bitcoin Strategy Optimum Roll ETF (BITC) has just been launched by Bitwise Asset Management, one of the world’s leading crypto asset managers. With a unique design, the fund minimizes pricing inefficiencies that can occur in bitcoin-linked ETFs focused on front-month or near-month futures contracts by offering investors regulated, professionally managed exposure to bitcoin.

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By allowing institutions, advisors, and their clients to add exposure to bitcoin returns without the risks of custodying bitcoin directly or investing through a novel platform, the Bitwise Bitcoin Strategy Optimum Roll ETF provides them a regulated, professional investment solution.

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Here's a tweet

Traders with a short term horizon may prefer a front-month methodology, but it can result in significant roll costs that adversely affect long-term performance.1 The objective of BITC is to maximize long-term returns by selecting contracts with the lowest contango (or the highest backwardation) based on an “optimum roll” strategy that considers all available contracts.

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Over time, Bitwise CIO Matt Hougan said, optimum roll strategies have outperformed those focused on front-month or near-month contracts in other asset classes. The bitcoin futures market continues to deepen and evolve, which is why we believe the same strategy applies. As a regulated vehicle that provides directional exposure to bitcoin, Bitwise Bitcoin Strategy Optimum Roll ETF is an exciting product designed for long-term-oriented investors."

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The fund will also be able to provide exposure to bitcoin in a format that is widely favored by financial professionals because it will be a SEC-regulated, “1940 Act” ETF. It has been reported by Bitwise/VettaFi that 68% of financial advisors prefer to invest in cryptocurrency through exchange-traded funds, according to a recent survey by Bitwise/VettaFi. For tax reporting purposes, as an alternative to the traditionally longer and more complex Form K-1, the fund will issue a Form 1099.

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Bitwise CEO Hunter Horsley told us that if there is anything we learned this past year, it has been that how you invest in crypto is as important as what you buy. As a professional, regulated ETF for institutional, financial advisor, and client institutions, Bitwise provides an option for gaining exposure to bitcoin returns without the risks of directly holding bitcoin or investing using new platforms by using Bitwise Bitcoin Strategy Optimum Roll ETF.

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BNY Mellon serves as a custodian for the Bitwise Bitcoin Strategy Optimum Roll ETF and Foreside Fund Services, LLC serves as its distributor. The Bitwise Bitcoin Strategy Optimum Roll ETF is rebalanced every month.

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It is part of Bitwise's broad suite of professional investment solutions that includes the Bitwise Bitcoin Strategy Optimum Roll ETF (ticker: BITC). This ETF is designed to provide access to the rapid development of the crypto market while maximizing the value of the investment. There are currently more than 20 products on Bitwise's platform, including Bitwise Crypto Industry Innovators ETF (BITQ), Bitwise Web3 ETF (BWEB), Bitwise Crypto 10 Index Fund (BITW), private placement funds, and multi-strategy solutions as well as separately managed accounts as well. It has been estimated that over 1,500 RIAs, advisor teams, family offices, and institutions are relying on Bitwise for their clients' crypto exposure, which has doubled from 1,500 in 2022 to over 1,500 firms in 2022, with more than 1,500 of them navigating crypto with the support of Bitwise's nationwide distribution network and client service team.

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Asset Management at Bitwise

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There's nothing quite like Bitwise, which is based in San Francisco, and one of the fastest growing crypto asset managers on the planet. It provides a wide range of investment vehicles, as well as index or active strategies. In addition to creating the world's largest crypto index fund (OTCQX: BITW), the firm has developed a range of products including Bitcoin, Ethereum, DeFi, NFTs, the Metaverse, and cryptocurrency-focused equity indexes.

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 Our mission at Bitwise is to provide quality research and education to financial advisors and investment professionals. In addition to having decades of experience in traditional asset management and indexing, Bitwise's team has a strong background in both technology as well as traditional asset management and indexing, having worked for firms as large as BlackRock, Blackstone, Meta, and Google, as well as the U.S. Attorney’s Office. 

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There are over 200 individuals who have invested in Bitwise, and they have been mentioned in the Wall Street Journal, Institutional Investor, CNBC, Barron's, Bloomberg, among other publications.

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