- The WisdomTree Managed Futures Strategy Fund has bought Bitcoin Futures for its viable potential and promising returns.
- The WisdomTree Managed Futures Strategy Fund’s largest holdings at present are the US Treasury Bills estimating about 42% of the fund’s assets.
- As per the ETF’s website, the current purchase of Bitcoin Futures is just 1.5%, but the instructions explain that up to 5% of assets will be allowed to be of Bitcoin Futures.
WisdomTree Managed Futures Strategy Fund (WTMF) is another US-listed ETF (Exchange-Traded Fund) that recently added an allocation of about 1.5% to Bitcoin (BTC) futures, looking forward to the potential for reasonable returns not linked with the broader market. The allocation of funds was executed in the form of Bitcoin futures contracts that are regulated and traded on CME (Chicago Mercantile Exchange). All US-listed Bitcoin ETFs are backed by this Bitcoin derivative body, the CME, only.
As per WisdomTree’s announcement, the funds will not be directly invested in Bitcoin, which is quite similar to circumstances adopted by several traditional financial bodies of the United States.
The organization also explained its reasons to invest in Bitcoin futures, saying that the digital asset is pretty attractive, not just because of its popularity and high prices but also due to the potential for viable and promising returns. The organization further explained that one of the other factors they considered was the absence of connection with other digital assets.
The Aim Of WTMF
WisdomTree noted that Bitcoin had been a significant modifier as compared to other traditional classes of assets. Also, that their primary aim is to serve exposure to investors but in a risk-controlled way through a systematized lengthy strategy that follows trends and will respond as quickly as possible to constantly changing scenarios of the market. The fund’s website also showed that, to date, the allocation had been just 1.5%, however, the instructions of funds will allow up to 5% of its assets to be made up of Bitcoin futures.
As per the data that has been gathered from the survey of returns from different digital assets compared to BTC by Microstrategy, reveals that by January 6, about 212 companies from the total 500 companies that make up the S&P 500 index have shown better performance on a 12-month basis than Bitcoin did.
The WTMF’s Strategy
A planned strategy that follows trends is adopted by the WTMF, an actively managed exchange-traded fund. The website of WTMF explained that the ETF was built to produce beneficial returns from rising and falling markets by maintaining the performance of funds keeping it detached from the fixed income market and the broader stock market.
The current US Treasury Bills are the WTFM’s top holding that makes up over 42% of the fund’s assets. Over the past year, the fund has been up by about 18% after showing no changes for about ten years, the website displayed.