Bitwise Closes Two Niche Crypto ETFs Amid Shift to Simpler Strategies

Bitwise Asset Management has announced the closure of two of its niche cryptocurrency exchange-traded funds (ETFs). The Bitwise Trendwise BTC/ETH and Treasuries Rotation Strategy ETF and the Bitwise Web3 ETF have failed to attract sustained investor interest, leading to their liquidation. This move comes as issuers in the sector reassess product viability in an increasingly competitive and performance-driven ETF landscape.

The funds' last day of trading will be May 21, with investors having until then to purchase creation units. The final net asset value (NAV) of the funds will be calculated on May 28, with liquidation proceeds expected to be distributed to shareholders around May 29. Investors holding shares beyond the trading deadline will have their positions automatically redeemed for cash based on NAV.

The closure of these ETFs reflects a trend in the sector towards simpler, high-conviction exposures. Assets are increasingly concentrated in large, liquid products, particularly spot Bitcoin ETFs, which are redirecting attention away from thematic and hybrid strategies. In a recovering crypto market, only the most efficient and investor-aligned ETF strategies are proving durable.