Bitwise Asset Management, a leading crypto index fund manager in the United States, has announced the upcoming launch of two Ethereum-focused exchange-traded funds (ETFs). These ETFs, the Bitwise Ethereum Strategy ETF (AETH) and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP), will commence trading on October 2. They aim to provide investors with exposure to the thriving Chicago Mercantile Exchange (CME) Ethereum futures market within a regulated ETF framework.
Bitwise CEO Hunter Horsley expressed enthusiasm for this initiative, emphasizing Ethereum’s extensive adoption and remarkable growth. Ethereum has seen a surge in usage, with billions in revenue, millions of users, and thousands of distinct applications and developers.
These ETFs arrive at a crucial juncture as Ethereum-based applications continue to expand significantly. In Q1 2023, stablecoins processed over $1 trillion, marking an astronomical rise from their near absence in 2019. Moreover, the total capital locked in decentralized finance (DeFi, short for "Decentralized Finance," refers to a movement that aims to create an open-source, permissionless, and transparent financial service ecosystem without the need for traditional intermediaries, such as banks, brokers, or insurance companies. DeFi platforms are primarily built on the Ethereum blockchain, leveraging smart contracts to automate complex financial transactions. Key Points: • Smart Contracts: At the heart of... More) applications on the Ethereum network has surged 60-fold since 2019, reaching $40 billion.
Bitwise’s Chief Investment Officer, Matt Hougan, believes that Ethereum offers a broader portfolio opportunity than Bitcoin due to its lower correlation with traditional equities and its growth-oriented characteristics.
These Ethereum ETFs represent the latest additions to Bitwise’s diverse portfolio of professionally managed vehicles, including the Bitwise Crypto Industry Innovators ETF (BITQ), the Bitwise Bitcoin Strategy Optimum Roll ETF (BITC), and the Bitwise Web3 ETF (BWEB).