The deluge of new cryptocurrency ETFs continues. Bitwise Asset Management announced today the launch of two Ethereum-themed ETFs on the New York Stock Exchange. With the launch, investors can gain exposure to futures in this category through the ETF wrapper for the first time.
The Bitwise Ethereum Strategy ETF (NYSE Arca: AETH) invests in regulated CME ether futures focused on front-month contracts. The Bitwise Bitcoin and Ether Equal Weight Strategy ETF (NYSE Arca: BTOP) provides equal exposure to regulated CME bitcoin futures and CME ether futures. Both funds have an expense ratio of 0.85%.
“Ethereum now has billions in revenue, millions of users, and thousands of distinct apps and developers,” said Bitwise CEO Hunter Horsley. “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.”
Ethereum: A Broader Opportunity Than Bitcoin
Bitwise CIO Matt Hougan argued in the news release that the “portfolio opportunity with Ethereum is broader than bitcoin.”
Hougan continued: “Some investors consider Ethereum an alternative, while others see it as a traditional growth investment. It has elements of both. Like alternatives, Ethereum’s correlation to traditional equities over the last two years has been low, and trending lower. At the same time, its increased usage and cash flows suggest it has the characteristics of a growth asset.”
“We find that, to some investors, Ethereum makes more intuitive sense than bitcoin,” he added. “Every time people use an Ethereum-based app, they pay a fee in Ethereum, which ultimately accrues value to investors in a manner similar to stock buybacks. With cash flows and real-world applications, Ethereum is often easier to grasp and value for experienced investors.”
The launch of AETH and BTOP adds to Bitwise’s broad suite of professionally managed vehicles. As of their launch, Bitwise’s lineup of more than 20 products includes five crypto ETFs.
Moving Day for Crypto ETFs
These Bitwise funds are part of several crypto-linked ETFs that begin trading today. The VanEck Ethereum Strategy ETF (EFUT) begins trading on the Cboe Exchange. ProShares also today launched three crypto ETFs on the NYSE, including the first ETF to target the performance of ether.
“The SEC has been clearing their desks ahead of the possible government shutdown,” said VettaFi’s associate director of research Roxanna Islam. “This means issuing delays for spot bitcoin ETF filings while likely allowing ether future ETFs to potentially begin trading early next week.”
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