Bitcoin has emerged as a transformative asset class, capturing the attention of institutional and retail investors alike. The BITC ETF, managed by Bitwise Asset Management, offers a strategic and professionally managed way to gain exposure to Bitcoin’s growth potential while actively mitigating downside risk during market downturns. Designed for investors seeking diversified portfolio allocation with controlled volatility, BITC combines cutting-edge crypto expertise with traditional financial safeguards.
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Why Invest in BITC?
Bitcoin remains the world’s largest and most recognized cryptocurrency by market capitalization and adoption. However, its price volatility can deter risk-averse investors. The BITC ETF addresses this challenge by offering directional Bitcoin exposure through a dynamic strategy that shifts between high-growth assets and capital-preserving instruments—depending on market momentum.
This approach allows investors to benefit from upward trends in crypto markets while reducing exposure during periods of uncertainty or decline.
Bitcoin Exposure with Downside Risk Management
One of Bitcoin’s most compelling characteristics is its historically low correlation with traditional asset classes like equities and bonds. This makes it a powerful tool for portfolio diversification. BITC leverages this trait while introducing a structured risk-management framework.
Rather than maintaining constant exposure, BITC’s strategy dynamically allocates between CME Bitcoin futures and U.S. Treasury bills, depending on prevailing market conditions. This rotational model helps preserve capital during bearish or volatile phases—offering peace of mind without sacrificing long-term upside potential.
Proprietary Research-Driven Investment Strategy
At the core of BITC’s performance is a proprietary rotational strategy based on rigorous market analysis and technical indicators. When momentum signals are strong, the fund fully invests in CME-listed Bitcoin futures to capture gains during sustained rallies. Conversely, when market conditions turn uncertain or negative, the fund reallocates to short-term U.S. Treasuries—among the safest fixed-income instruments available.
This adaptive method aims to deliver higher risk-adjusted returns compared to a passive buy-and-hold approach. By aligning with market trends and prioritizing capital preservation, BITC provides a more balanced entry point into the crypto ecosystem.
Professionally Managed by Crypto Market Experts
Bitwise Asset Management has been at the forefront of digital asset investing for over seven years. With a team of more than 90 professionals specializing in custody, trading, compliance, and regulatory frameworks, Bitwise brings institutional-grade rigor to crypto investing.
The BITC ETF is advised by Bitwise Investment Manager, LLC, with sub-advisory support from Vident Asset Management. Assets are securely held by Bank of New York Mellon, one of the most trusted custodians in global finance. This robust infrastructure ensures transparency, security, and regulatory compliance—critical factors for conservative and sophisticated investors alike.
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Fund Summary: Key Details at a Glance
Understanding the structure and operational backbone of an ETF is essential for informed decision-making. Below are the key facts about the BITC ETF as of June 30, 2025.
Core Fund Information
- Fund Name: BITC ETF
- Inception Date: March 20, 2023
- Adopted Current Strategy: December 3, 2024
- Net Assets (AUM): $20,008,586
- Shares Outstanding: 450,004
- Gross Expense Ratio: 1.43%
- Net Expense Ratio (after fee waiver): 0.85% (contractually capped until May 1, 2027)
Operational Partners
- Investment Adviser: Bitwise Investment Manager, LLC
- Sub-Adviser: Vident Asset Management
- Administrator & Custodian: Bank of New York Mellon
- Distributor: Foreside Fund Services, LLC
- Legal Counsel: Chapman and Cutler, LLP
This partnership structure ensures that all aspects of fund management—from trading execution to legal compliance—are handled by experienced, reputable institutions.
Portfolio Holdings: Transparent and Adaptive Allocation
Transparency is a cornerstone of investor trust. As of June 30, 2025, the BITC ETF's holdings reflect its active rotation strategy between Bitcoin futures and U.S. Treasuries.
Current Asset Allocation
- CME Bitcoin Futures (July 2025): $19,563,750 (98.14%)
- CME Micro Bitcoin Futures (July 2025): $370,125 (1.86%)
- U.S. Treasury Bills (maturing July 2025): $14,452,294.35 (held across two securities)
These allocations demonstrate the fund’s current positioning in favor of Bitcoin exposure due to positive market momentum. However, holdings are subject to change based on real-time market signals—ensuring agility and responsiveness.
Note: All holdings are subject to change. Past allocations do not guarantee future positions.
Performance Metrics: Measuring Success Over Time
Investors need reliable performance data to evaluate an ETF’s track record. The following figures represent the BITC ETF’s results as of June 29, 2025.
Quarter-End Performance (NAV Basis)
- 3-Month Return: +9.32%
- Year-to-Date (YTD): -4.44%
- 1-Year Return: +8.39%
- Since Inception: -4.44%
Market Price Performance (Midpoint of Bid-Ask Spread)
- 3-Month Return: +9.22%
- YTD: -4.39%
- 1-Year Return: +8.45%
- Since Inception: -4.39%
Past performance is not indicative of future results. Returns for periods under one year are not annualized. NAV reflects official closing values at 4:00 p.m. ET; market price reflects midpoint pricing and may differ from actual trade execution.
The fund’s net expense ratio of 0.85% includes management fees, custody costs, and administrative expenses—ensuring all-inclusive cost transparency.
Premium/Discount Tracking: Market vs. NAV
Understanding how an ETF trades relative to its Net Asset Value (NAV) is crucial for timing entries and exits.
As of Q2 2025:
- Traded at NAV: 1 day
- Traded at Premium: 7 days
- Traded at Discount: 48 days
This indicates that BITC frequently trades slightly below its NAV—a potential opportunity for value-oriented investors.
Distribution History
BITC distributes capital gains and income annually. Recent distributions include:
- December 2023: Ordinary Income of $1.882 per share
- December 2024: Ordinary Income of $20.218 per share
These payouts reflect realized gains from portfolio activity and provide additional return avenues beyond price appreciation.
Frequently Asked Questions (FAQ)
Q: What is the BITC ETF?
A: The BITC ETF is an exchange-traded fund that provides managed exposure to Bitcoin through CME futures contracts and rotates into U.S. Treasuries during market downturns to protect capital.
Q: How does BITC manage downside risk?
A: By using a proprietary rotational strategy that shifts investments from Bitcoin futures to short-term U.S. Treasury bills when market momentum weakens.
Q: Is BITC suitable for long-term investors?
A: Yes. Its adaptive strategy aims to capture long-term Bitcoin growth while reducing drawdowns—making it suitable for investors with varying risk tolerances.
Q: What fees does BITC charge?
A: The net expense ratio is capped at 0.85% until May 1, 2027, significantly lowering the cost burden compared to the gross rate of 1.43%.
Q: Where can I find the latest performance data?
A: Updated performance figures are available through financial data platforms or by contacting Bitwise directly at 1-415-707-3663.
Q: Can individual investors buy BITC?
A: Yes. BITC trades on major exchanges like any other ETF and is accessible through brokerage accounts.
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