Amid a frenzy of spot ether ETF launches on Tuesday, Bitwise Asset Management has staked its claim with the Bitwise Ethereum ETF (ETHW).
Normally, ETHW has a net expense ratio of 0.20%. However, Bitwise is waiving the sponsor free for the first $500 of Trust assets. The decision for the fund’s early days showcases how asset managers are offering competitive discounts to attract more crypto investors.
By using a spot ether ETF, investors can gain exposure to ethereum’s price performance without directly needing to own the cryptocurrency itself. This is further buoyed by Bitwise’s extensive experience in managing crypto-focused strategies. With the unique benefits ethereum can offer, this fund can be a robust option for both portfolio diversification and growth potential.
Blockchain Benefits
“We believe Ethereum is the world’s most interesting blockchain. And an exchange-traded product gives investors much-awaited exposure to its potential,” noted Matt Hougan, CIO of Bitwise. "Investing in ETH is like making a ‘picks and shovels’ investment in the underlying infrastructure behind tokenization, stablecoins, DeFi, NFTs, decentralized social media, and other killer apps in the blockchain space.”
Investing in ETHW additionally comes with the benefits of supporting open-source developers for ethereum. Bitwise has committed to donating 10% of the fund’s gross profits to Protocol Guild and the PBS Foundation. These two organizations support ethereum research and development.
As more spot ether ETFs enter the U.S. market, the price of ethereum is doing quite well. Per CoinDesk, the price is sitting around $3,400.
The launch of Bitwise’s spot ether fund comes after the asset manager saw strong success with its spot bitcoin ETF, the Bitwise Bitcoin ETF Trust (BITB ). As of July 23, 2024, that fund has over $2.7 billion in AUM.
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