Bitwise Asset Management is set to close and liquidate two of its ETFs, the Bitwise Trendwise BTC/ETH and Treasuries Rotation Strategy ETF (NYSE:BTOP) and the Bitwise Web3 ETF (NYSE:BWEB), after the niche strategies failed to garner investor interest.
Both funds will see their last day of trading and final opportunity for creation unit purchases fall on May 21. The funds' final net asset value (NAV) 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 closures come as issuers reassess product viability in an increasingly competitive and performance-driven ETF landscape. While crypto-linked funds saw renewed interest earlier this year amid a rebound in Bitcoin and Ethereum prices, not all strategies have managed to attract sustained inflows.
BTOP, which employed a rotation strategy between crypto assets and U.S. Treasuries, struggled to differentiate itself in a market now dominated by spot crypto ETFs offering direct exposure. So far this year, flow data was recorded only on Jan. 22, and that was for a $71,000 outflows.
Meanwhile, BWEB, focused on Web3 equities, faced headwinds as investor enthusiasm for broader blockchain themes cooled compared to more targeted AI and semiconductor plays. There has been no transaction in this ETF this year so far.
Recent industry trends suggest a shift toward simpler, high-conviction exposures. Assets have increasingly concentrated in large, liquid products, particularly spot Bitcoin ETFs, which are redirecting attention away from thematic and hybrid strategies.
Even in a recovering crypto market, only the most efficient and investor-aligned ETF strategies are proving durable.
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