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Asset managers are actively investigating digital asset offerings, with Bitwise set to initiate trading for two Ethereum-focused ETFs next week.
The introduction of these two products is anticipated to provide investors with their first opportunity to access CME Ether futures via the widely recognized and regulated ETF structure.
Bitwise’s Ethereum-Focused ETFs
Bitwise, a manager of crypto index funds, has revealed that trading for the Bitwise Ethereum Strategy ETF (AETH) and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP) will commence on Monday, October 2nd.
The Bitwise Ethereum Strategy ETF targets regulated CME Ether futures, concentrating on front-month contracts, whereas the Bitwise Bitcoin and Ether Equal Weight Strategy ETF offers equal exposure to regulated CME Bitcoin Futures and CME Ether Futures. Both funds are custodied by the Bank of New York Mellon (BNY), with an expense ratio of 0.85% each.
This recent development follows Bitwise’s announcement regarding the submission of amended registration statements for both ETFs to the Securities and Exchange Commission (SEC).
Emphasizing the significant advancements in Ethereum-based applications in recent years, the Chief Investment Officer of the San Francisco-based asset manager, Matt Hougan, stated that the investment opportunities associated with Ethereum are more extensive than those with bitcoin. He noted that some investors consider ETH as an alternative, while others regard it as a conventional growth investment, mentioning that the asset possesses “elements of both.”
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In discussing Ethereum’s distinctive role in investment portfolios, Hougan highlighted that the asset’s correlation with traditional equities has remained low and is trending downward over the past two years.
Bitwise CEO Hunter Horsley also shared insights regarding the forthcoming Ethereum-themed ETFs in a 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.”
Spot ETFs Continue to Face Regulatory Gridlock
In addition to Bitwise’s ETFs, Valkyrie Investments and VanEck are also expected to begin trading in Ethereum futures products next week. Although the SEC is reportedly accelerating the approval process for Ethereum futures funds, it has chosen to delay the review of applications for similar funds related to spot Ethereum.
As the status of spot ETFs remains uncertain, four US lawmakers have urged the SEC to swiftly approve one, contending that it is illogical for the regulator to continue prioritizing futures ETFs over spot products, given the lack of a clear distinction between the two.
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