WisdomTree Adds Bitcoin Futures Exposure to WTMF

Announcements, News, Regulation | January 7, 2022 By:

The WisdomTree Managed Futures Strategy Fund (WTMF) has added an approximate 1.5% allocation to bitcoin futures contracts. WTMF will not invest in bitcoin directly.

In addition to offering exposure to equity, commodity, currency and rates through futures contracts, WTMF is now the first systematic trend-following ETF strategy providing investors access to Bitcoin futures exposure. The fund seeks to achieve positive total returns in rising or falling markets that are not directly correlated to broad market equity or fixed income returns.

As bitcoin is a scarce and structurally deflationary asset, WisdomTree’s allocation to bitcoin futures seeks to provide a hedge against inflation and returns uncorrelated with equities and fixed income, allowing the Bitcoin futures to contribute meaningfully — but not dominate — the fund’s volatility profile.

This update to WTMF comes just a few months after the WisdomTree Enhanced Commodity Strategy Fund (GCC) became the first ETF to provide exposure to crypto assets, adding an approximate 3% allocation to bitcoin futures in October and continuing with a limited allocation to bitcoin futures today.

Recently, the CBOE filed a new 19b-4 listing application with the SEC for a spot Bitcoin ETF to be made available from WisdomTree, which is the first proposed spot Bitcoin ETF to voluntarily apply certain provisions of the 1940 Act to the planned operations, infrastructure and oversight of a spot Bitcoin ETF in order to provide investors with some of the significant protections and transparency of the 1940 Act.