Bitwise to Launch Ethereum-Themed ETFs
Asset managers are actively exploring digital asset products, and Bitwise is set to launch trading for two Ethereum-themed ETFs next week. These products will allow investors to gain exposure to CME Ether futures through regulated ETFs for the first time.
About Bitwise’s ETFs
Bitwise, a crypto index fund manager, announced that the trading of the Bitwise Ethereum Strategy ETF (AETH) and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP) will begin on October 2nd. The AETH fund invests in regulated CME Ether futures, while the BTOP fund provides equal exposure to regulated CME Bitcoin Futures and CME Ether Futures. Both funds are custodied by the Bank of New York Mellon with an expense ratio of 0.85% each.
Ethereum’s Position in Portfolios
Bitwise’s CIO Matt Hougan highlighted Ethereum’s progress and stated that it offers a broader portfolio opportunity than bitcoin. He explained that some investors see ETH as an alternative investment, while others view it as a traditional growth investment, as it combines elements of both. Hougan also pointed out that Ethereum’s correlation to traditional equities has remained low and is trending lower.
Bitwise CEO’s Statement
“Ethereum now has billions in revenue, millions of users, and thousands of distinct apps and developers. As the leading operating system for crypto, Ethereum has spread like wildfire. With blue-chip brands like Nike, Starbucks, Adidas, Pepsi, PayPal, JPMorgan, and others building and using applications on Ethereum, the momentum is only building. AETH and BTOP give investors the opportunity to participate in that growth with confidence through regulated ETFs.”
Regulatory Gridlock for Spot ETFs
Valkyrie Investments and VanEck are also expected to start trading Ethereum futures products next week. However, the SEC has postponed the processing of applications for spot Ethereum ETFs while expediting approvals for futures funds. Four US lawmakers have urged the SEC to approve a spot ETF promptly, arguing that prioritizing futures ETFs over spot products is illogical since there is no clear distinction between the two.
Hot Take: Expanding Access to Ethereum
The launch of Bitwise’s Ethereum-themed ETFs, along with other upcoming offerings, reflects the growing demand for access to Ethereum in a regulated format. By providing exposure to CME Ether futures, these ETFs allow investors to participate in the growth of Ethereum with confidence. While spot ETFs continue to face regulatory hurdles, the introduction of futures-based products demonstrates progress in expanding investment opportunities in the crypto market.
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