Bitwise Asset Management Launches Ethereum Futures ETFs
Bitwise Asset Management, a leading cryptocurrency asset management company, is set to launch two groundbreaking Ethereum Futures Exchange-Traded Funds (ETFs), AETH and BTOP, on October 2. These ETFs will allow investors to gain exposure to CME Ether futures in a regulated format, expanding Bitwise’s existing range of crypto investment products.
Introduction of Ethereum-themed ETFs
Bitwise Asset Management has announced the launch of two innovative Ethereum-themed ETFs: the Bitwise Ethereum Strategy ETF (AETH) and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP). These ETFs, which are scheduled to begin trading on October 2, will be the first to offer investors exposure to CME Ether futures through a regulated ETF format.
About Bitwise Asset Management
Based in San Francisco, Bitwise Asset Management is a prominent player in the crypto asset management space. The company offers a wide range of crypto investment vehicles, including over 20 products and five ETFs. Bitwise is known for its commitment to quality education and research, as well as its collaborations with financial advisors and investment professionals.
The Growth of Ethereum
“Ethereum now has billions in revenue, millions of users, and thousands of distinct apps and developers,” said Bitwise CEO Hunter Horsley. The data shows that stablecoins processed over $1 trillion in transactions in Q1 2023 alone, with the total capital in decentralized finance (DeFi) applications on Ethereum reaching $40 billion—a 60-fold increase since 2019.
Ethereum vs. Bitcoin
According to Bitwise CIO Matt Hougan, Ethereum offers a broader portfolio opportunity compared to Bitcoin, with low correlation to traditional equities. However, it’s important to note that both Ethereum and Bitcoin futures come with unique risks, including price volatility and liquidity risks.
About AETH and BTOP ETFs
AETH focuses on regulated CME Ether futures, particularly front-month contracts. The fund custodian for AETH is the Bank of New York Mellon, with an expense ratio of 0.85%. On the other hand, BTOP provides equal exposure to regulated CME Bitcoin and Ether futures. The fund custodian for BTOP is also the Bank of New York Mellon, with the same expense ratio of 0.85%.
Risks Associated with the ETFs
Bitwise reminds investors that these ETFs do not directly invest in Bitcoin or Ethereum but in their respective futures contracts. As a result, the funds are subject to various risks, including price volatility, liquidity risk, and the cost of futures investment.
ProShares’ Launch of Ether-focused ETFs
ProShares is also set to launch its own groundbreaking ETFs on the same day as Bitwise Asset Management’s Ethereum Futures ETFs. ProShares will introduce the first-ever ETF focused solely on Ether, along with two blended ETFs that offer exposure to both Bitcoin and Ether. These new ETFs aim to provide investors with a more accessible and regulated way to invest in cryptocurrencies, eliminating the need for a separate crypto custodian or wallet.
Hot Take: Expanding Crypto Investment Opportunities
The introduction of Bitwise Asset Management’s Ethereum Futures ETFs and ProShares’ Ether-focused ETFs marks a significant milestone in expanding investment opportunities in the crypto space. With these regulated ETFs, investors can gain exposure to Ethereum and other cryptocurrencies without directly holding the assets. This development further bridges the gap between traditional finance and the crypto market, offering a more accessible and secure investment avenue for those interested in participating in the digital asset space.
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