UBS Asset Management Launches Ethereum-Based Money Market Fund
UBS Asset Management has successfully launched the pilot of an Ethereum-based money market fund as part of its Project Guardian initiative. This marks the first in a series of real-time pilots that UBS plans to introduce. The firm used its in-house tokenization service, UBS Tokenize, to conduct tests of the fund’s activities directly on the blockchain.
Head of UBS Asset Management for Singapore and Southeast Asia, Thomas Kaegi, highlighted that this initiative is a significant step forward in understanding fund tokenization. UBS aims to collaborate with traditional financial institutions and fintech providers to enhance market liquidity and access to financial markets for clients.
Importance of UBS’s Pilot for Project Guardian
UBS’s tokenized money market fund pilot is an integral part of Project Guardian, an industry initiative led by the Monetary Authority of Singapore (MAS). The fund operates as a variable capital company (VCC), a regulatory innovation applicable to various investment funds in Singapore.
After the successful launch of the initial pilot transactions, UBS Asset Management plans to explore further practical scenarios under Project Guardian. This will involve collaboration with various partners and analysis of different investment strategies.
Bitwise Launches Ethereum-Related ETFs on CME Futures
Bitwise, a leading crypto index fund manager in the US, recently announced the launch of two new Ethereum-related ETFs: the Bitwise Ethereum Strategy ETF (AETH) and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP). These ETFs are based on CME futures, providing clients with exposure to Ethereum-related opportunities without directly investing in the digital asset.
The launch of these futures ETFs by Bitwise demonstrates the growing demand from institutional investors. The Bank of New York Mellon will serve as custodian for both Ethereum funds.
Hot Take: Ethereum’s Growing Potential
Ethereum’s decentralized financial ecosystem has experienced significant growth, with a total locked-in value exceeding $21 billion. This suggests that the cryptocurrency market still holds growth prospects despite recent bearish trends. Ethereum has become the leading operating system for cryptocurrencies, with major companies like Nike, Starbucks, and PayPal building and using applications on the platform.
The introduction of regulated ETFs like AETH and BTOP allows investors to confidently participate in Ethereum’s growth. These developments highlight the increasing adoption and recognition of Ethereum’s potential in the financial industry.
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