Bitwise Market-Neutral Crypto Fund Yields 5.9% as Futures Premiums Expand

Bitwise’s market-neutral crypto fund, the USCC, has posted a 5.9% annualized return over the past 30 days, driven by 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 simultaneously selling futures contracts to capture the premium spread without taking directional market risk.

How the Strategy Works

The cash-and-carry approach is a well-established arbitrage technique in traditional finance, and its application in crypto has gained traction among institutional investors seeking yield without exposure to price swings. By holding spot assets and shorting futures, the fund locks in a spread that reflects the market’s bullish sentiment. In addition to the basis trade, the fund 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. This has expanded the basis, allowing the fund to capture higher returns than in periods of lower volatility or bearish positioning.

Fund Performance and Growth

Bitwise acquired management rights to the tokenized fund from Superstate in June, and the product has since attracted approximately $137.7 million in assets under management. The fund’s ability to integrate with decentralized finance (DeFi) protocols adds another layer of utility, enabling seamless deployment of capital while maintaining a market-neutral posture.