Bitwise, a leading crypto index fund manager in the United States, has unveiled plans to launch two Ethereum-themed ETFs, namely the Bitwise Ethereum Strategy ETF (AETH) and Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP). These ETFs will incorporate CME futures products, providing investors with exposure to Ethereum without the need to invest directly in the underlying digital assets. This move signifies the growing demand for crypto investment options among institutional investors.
The custodian bank overseeing the two Ethereum-themed funds is the Bank of New York Mellon.
Bitwise CEO Hunter Horsley emphasized that these two funds are part of Bitwise’s ongoing efforts to expand its range of crypto products, offering investors a diverse set of opportunities within the cryptocurrency space.
In recent years, Ethereum core developers have been actively enhancing the Ethereum blockchain to maintain its competitiveness. Additionally, the explosive growth of the decentralized financial ecosystem on the Ethereum network, with over $21 billion in total locked value (TVL), indicates promising future prospects for Ethereum despite a two-year market downturn.
Horsley noted, “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 running applications on Ethereum, the momentum is only building. AETH and BTOP allow investors to confidently participate in this growth through regulated ETFs.”
Bitwise’s Chief Investment Officer (CIO), Matt Hougan, pointed out that the Ethereum network possesses attributes of both a traditional growth investment and an alternative product, making it appealing to a wide range of investors. Ethereum’s correlation with traditional stocks has remained notably low in the past two years, further boosting its appeal due to increased usage and cash flow. Interestingly, Bitwise highlighted that an increasing number of investors are favoring Ethereum over Bitcoin due to its economic structure and growth potential.
Bitwise already offers a range of crypto products, with five ETFs among its portfolio of 20 products. In addition to the newly approved crypto products, Bitwise provides offerings such as the Bitwise Crypto Industry Innovators ETF (BITQ), Bitwise Bitcoin Strategy Optimum Roll ETF (BITC), and Bitwise Web3 ETF (BWEB).
Market Outlook
The cryptocurrency market is anticipated to attract more institutional capital in the coming quarters, particularly in light of rising global inflation. Additionally, many of the top-rated crypto assets have outperformed traditional investments year-to-date, resulting in significant inflows of funds. Notably, investors are closely watching for potential cryptocurrency market developments in the coming months, driven in part by the narrative surrounding the Bitcoin halving event.
