Introduction

Bitwise Asset Management, the largest cryptocurrency index fund manager in the US, has announced its plans to launch two Ethereum-themed ETFs: Bitwise Ethereum Strategy ETF (AETH) and Bitwise Bitcoin and Equal Weight Strategy ETF (BTOP). These ETFs will allow investors to tap into the Ethereum futures market on the Chicago Mercantile Exchange (CME) via a regulated ETF format.

Trading to Begin on October 2nd

Bitwise has verified that trading for the two Ethereum futures ETFs will begin on October 2nd. This development comes at a pivotal time, as Ethereum-based applications have experienced significant growth. Stablecoins processed over $1 trillion in the first quarter of 2023, and the total capital deposited across decentralized finance (defi) applications on Ethereum has increased 60-fold since 2019 to reach $40 billion.

Enthusiasm for Ethereum

Hunter Horsley, CEO of Bitwise, expressed his enthusiasm for the initiative, citing the widespread use and growth of Ethereum. He highlighted Ethereum’s billions in revenue, millions of users, and thousands of top apps and developers.

Ethereum’s Unique Opportunities

Matt Hogan, CTO at Bitwise, believes Ethereum offers a broader wallet opportunity than Bitcoin due to its unique capabilities. He mentioned that Ethereum’s correlation with traditional stocks has been low and trending downward, and its increasing usage and cash flows suggest it has the characteristics of a growth asset.

Expanding Bitwise’s Suite of Managed Instruments

The Bitwise Ethereum ETFs are the latest additions to Bitwise’s suite of professionally managed instruments, which already includes the Bitwise Crypto Industry Innovators ETF, Bitwise Bitcoin Strategy Optimum Roll ETF, and Bitwise Web3 ETF.

Other Companies Exploring Ethereum ETFs

While companies like BlackRock, Invesco, and Valkyrie are still awaiting approval for their Bitcoin ETF applications from the US Securities and Exchange Commission (SEC), several companies are venturing into the Ethereum ETF space. Invesco, for example, is reportedly investigating the possibilities of launching an Invesco Galaxy Ethereum ETF.

Conclusion

Bitwise’s launch of Ethereum futures ETFs on October 2nd offers investors the opportunity to access the growing Ethereum market through a regulated ETF format. With the increasing usage and cash flows of Ethereum-based applications, these ETFs provide a way for investors to participate in the potential growth of the Ethereum ecosystem.