Bitwise's Market-Neutral Crypto Fund Posts 5.9% Annualized Return

Bitwise's USCC market-neutral crypto fund has achieved an annualized return of 5.9% over the past 30 days, thanks to a widening gap between futures and spot prices.

The fund employs a cash-and-carry strategy, buying major spot assets like Bitcoin and Ethereum while selling futures contracts to capture the premium spread without taking directional market risk.

This approach has gained traction among institutional investors seeking yield without exposure to price swings, as it locks in a spread that reflects the market's bullish sentiment. The fund also incorporates liquid staking assets such as weETH and JitoSOL, which generate extra yield through staking rewards.

The recent increase in futures premiums indicates a broader uptick in bullish sentiment across the cryptocurrency market, expanding the basis and allowing the fund to capture higher returns than in periods of lower volatility or bearish positioning. The fund's 5.9% annualized return is competitive with short-term U.S. Treasuries, which currently offer yields around 4-5%, especially given its additional staking income.