Crypto Specialist Bitwise Launches Spot Ethereum ETP (ETHW); Firm’s Seventh ETP Since 2021
Bitwise Asset Management has launched the Bitwise Ethereum ETF (ETHW) on the NYSE, offering direct investment in ether (ETH) with a 0.20% management fee. Key features include:
1. Fee waived for first 6 months on initial $500 million in assets
2. 10% of gross profits donated to Ethereum open-source developers
3. Transparency through published public wallet addresses
4. Built on success of Bitwise's spot bitcoin ETP, BITB
ETHW is Bitwise's 8th publicly traded crypto fund and 20th crypto product overall. The firm aims to provide mainstream access to crypto's potential through familiar investment vehicles.
Bitwise Asset Management ha lanciato il Bitwise Ethereum ETF (ETHW) sulla NYSE, offrendo un investimento diretto in ether (ETH) con una commissione di gestione dello 0,20%. Le caratteristiche principali includono:
1. Commissione annullata per i primi 6 mesi su un patrimonio iniziale di 500 milioni di dollari
2. Il 10% dei profitti lordi viene donato agli sviluppatori open-source di Ethereum
3. Trasparenza attraverso la pubblicazione degli indirizzi dei portafogli pubblici
4. Basato sul successo del ETP bitcoin spot di Bitwise, BITB
ETHW è il 8° fondo crittografico quotato in borsa di Bitwise e il 20° prodotto crittografico in generale. L'obiettivo della società è di fornire accesso mainstream al potenziale delle criptovalute attraverso veicoli di investimento familiari.
Bitwise Asset Management ha lanzado el Bitwise Ethereum ETF (ETHW) en la NYSE, ofreciendo inversión directa en ether (ETH) con una tarifa de gestión del 0,20%. Las características clave incluyen:
1. Comisiones exentas durante los primeros 6 meses sobre un patrimonio inicial de 500 millones de dólares
2. El 10% de las ganancias brutas donadas a los desarrolladores open-source de Ethereum
3. Transparencia a través de la publicación de direcciones de billeteras públicas
4. Basado en el éxito del ETP de bitcoin al contado de Bitwise, BITB
ETHW es el 8º fondo criptográfico cotizado en bolsa de Bitwise y el 20º producto criptográfico en general. La empresa tiene como objetivo proporcionar acceso generalizado al potencial de las criptomonedas a través de vehículos de inversión familiares.
Bitwise Asset Management는 NYSE에서 Bitwise Ethereum ETF (ETHW)를 출시하여 이더(ETH)에 직접 투자할 수 있는 기회를 제공하며, 0.20%의 관리 수수료를 부과합니다. 주요 특징은 다음과 같습니다:
1. 초기 5억 달러 자산에 대해 첫 6개월 동안 수수료 면제
2. 총 이익의 10%가 이더리움 오픈 소스 개발자에게 기부됨
3. 공개된 지갑 주소를 통해 투명성 확보
4. Bitwise의 현물 비트코인 ETP인 BITB의 성공을 바탕으로 구축됨
ETHW는 Bitwise의 8번째 상장 암호화 펀드이며 20번째 암호화 제품입니다. 이 회사는 익숙한 투자 수단을 통해 암호화폐의 잠재력에 대한 주류 접근을 제공하는 것을 목표로 하고 있습니다.
Bitwise Asset Management a lancé le Bitwise Ethereum ETF (ETHW) sur la NYSE, offrant un investissement direct en ether (ETH) avec des frais de gestion de 0,20%. Les points clés incluent :
1. Frais annulés pendant les six premiers mois sur un actif initial de 500 millions de dollars
2. 10% des bénéfices bruts sont donnés aux développeurs open-source d'Ethereum
3. Transparence grâce à la publication des adresses de portefeuilles publics
4. Basé sur le succès de l'ETP bitcoin au comptant de Bitwise, BITB
ETHW est le 8ème fonds cryptographique coté en bourse de Bitwise et le 20ème produit cryptographique au total. L'entreprise vise à fournir un accès grand public au potentiel des cryptomonnaies à travers des véhicules d'investissement familiers.
Bitwise Asset Management hat den Bitwise Ethereum ETF (ETHW) an der NYSE gestartet, der eine direkte Investition in Ether (ETH) mit einer Verwaltungsgebühr von 0,20% anbietet. Zu den Hauptmerkmalen gehören:
1. Gebühr entfällt in den ersten 6 Monaten auf die ersten 500 Millionen Dollar an Vermögenswerten
2. 10% des Bruttogewinns werden an die Open-Source-Entwickler von Ethereum gespendet
3. Transparenz durch veröffentlichte öffentliche Wallet-Adressen
4. Basierend auf dem Erfolg des Spot-Bitcoin-ETP von Bitwise, BITB
ETHW ist der 8. börsennotierte Krypto-Fonds von Bitwise und das 20. Krypto-Produkt insgesamt. Das Unternehmen hat das Ziel, den Mainstream-Zugang zu dem Potenzial von Krypto durch vertraute Anlagevehikel zu ermöglichen.
- Low management fee of 0.20%, with fee waived for first 6 months on initial $500 million in assets
- 10% of gross profits to be donated to Ethereum open-source developers
- Builds on success of Bitwise's spot bitcoin ETP (BITB), which has over $2.7 billion in assets
- Expands Bitwise's product suite to 20 crypto offerings
- Provides mainstream investors easier access to Ethereum's growth potential
- ETHW is not registered under the Investment Company Act of 1940 and lacks its protections
- High risk investment with potential for significant volatility and loss
- Fund's ether holdings will be reduced over time to pay for management fees and expenses
- Regulatory risks due to evolving crypto regulations
Insights
The introduction of the Bitwise Ethereum ETF (ETHW) is noteworthy due to several factors that could influence investor behavior and market dynamics. Firstly, the low management fee of 0.20% and an initial fee waiver on the first $500 million in assets makes ETHW a cost-effective option for retail investors. This could drive substantial initial inflows, enhancing liquidity and potentially leading to positive price movements for ETH. Additionally, the transparency measure of publishing public wallet addresses could bolster investor confidence, a important aspect in the relatively volatile and opaque crypto market. From a market penetration perspective, this move by Bitwise signifies increasing institutional interest in Ethereum and further mainstream acceptance of cryptocurrency investments. Overall, ETHW could diversify portfolio options for investors looking to gain exposure to Ethereum without directly holding the digital asset, which could lead to increased adoption and market liquidity.
The launch of ETHW underlines the critical role Ethereum plays in the crypto ecosystem, especially as the backbone of decentralized finance (DeFi) and stablecoins. Ethereum's position as the second-largest crypto asset by market cap and its widespread use cases in DeFi, NFTs and more, highlight its utility and growth potential. The decision to donate 10% of profits to Ethereum open-source developers is strategic, as it ensures the continued innovation and security of the Ethereum network, indirectly supporting the ETF's value proposition. Moreover, by not registering under the Investment Company Act of 1940, ETHW offers a distinct investment experience, albeit with higher associated risks. For retail investors, this ETF provides an accessible and regulated avenue to participate in one of the most promising blockchain projects.
Bitwise's strategic decision to launch an Ethereum ETF aligns with the growing recognition of blockchain technology’s potential. Ethereum's smart contract capabilities underpin a myriad of applications, from DeFi to decentralized applications (dApps) and enterprise solutions. By launching ETHW, Bitwise not only capitalizes on Ethereum's robust ecosystem but also contributes to its further development through profit donations to open-source developers. This could result in technological advancements and greater network security, enhancing Ethereum's long-term viability. Additionally, this ETF may attract tech-savvy investors who appreciate the innovation behind Ethereum's blockchain, further driving demand and potentially influencing ETH's market price.
Bitwise’s eighth publicly traded crypto fund, ETHW, has a management fee of
Investors should note that, unlike many other exchange-traded products, ETHW is not registered under the Investment Company Act of 1940 and is not subject to its regulations.
“The World’s Most Interesting Crypto Asset”
“We believe Ethereum is the world's most interesting blockchain, and an exchange-traded product gives investors much-awaited exposure to its potential,” said Bitwise CIO Matt Hougan. “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. Ethereum is also the platform of choice for big brands like Nike, JPMorgan, and others as they experiment with public blockchains.3 And now, thanks to ETHW, investors can gain exposure to Ethereum's growth potential and diversify their crypto exposure with the ease and familiarity of buying a stock.”
Ethereum has become the primary platform for stablecoins and DeFi, whose markets today are around
ETHW: Blockchain-Native Features, Managed by Veteran Crypto Asset Manager
ETHW features several key characteristics:
-
10% of gross profits to be donated to Ethereum open-source developers. Bitwise has committed to donating10% of all ETHW profits to two organizations: Protocol Guild, a grassroots funding organization that supports more than 170 core contributors to Ethereum Layer 1 protocol research and development, and PBS Foundation, a non-profit that funds open-source Ethereum block relays and surrounding research. “Ethereum, as an open-source technology, is maintained by a dedicated community of open-source developers,” said Hong Kim, Bitwise’s Chief Technology Officer. “Every investor in ETHW wants Ethereum to continue to advance, and this donation program contributes to that goal.” -
Builds on the historic success of Bitwise’s spot bitcoin ETP. ETHW’s debut comes just over six months after the launch of Bitwise’s first spot bitcoin ETP, BITB, which became one of the top 25 fastest-growing exchange-traded products of all time.6 Today, BITB has more than
$2.7 billion - Built by a crypto specialist firm. Investors in ETHW gain access not only to a product built with Bitwise’s specialist expertise, but high-quality insights, industry-leading research, and a nationwide distribution team they can call on to understand what’s happening in the industry.
- Becomes Bitwise’s 20th crypto product. Bitwise’s comprehensive array of crypto products grows to 20 with the addition of ETHW. It joins a suite that features seven other publicly traded funds—including the world’s largest crypto index fund—along with separately managed accounts, private placement vehicles, and multi-strategy solutions.
“2024 has been a landmark year for crypto as it moves firmly into the mainstream,” said Bitwise CEO Hunter Horsley. “The launch of both spot Bitcoin and spot Ethereum ETPs has opened up crypto’s groundbreaking potential to millions of people through one of the most popular investment vehicles in the world.7 The debut of the Bitwise Ethereum ETF reinforces the core mission that has driven us since 2017: Day in and day out, we’re here to help people understand and access the opportunities in crypto.”
Bitwise Offers Wide Range of Crypto Insights
In addition to its expansive product suite, Bitwise offers a wide range of insights, including the Weekly CIO Memo, topical white papers, interactive tools, and other key resources—including an Ethereum library—available in the Bitwise Expert Portal.
ETHW and BITB are not suitable for all investors. An investment in ETHW or BITB is subject to a high degree of risk, has the potential for significant volatility, and could result in significant or complete loss of investment.
To view the Fund's prospectus, click here.
To learn more about ETHW, visit ethwetf.com.
Risks and Important Information
This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit ETHWetf.com/prospectus.
The Bitwise Ethereum ETF (“ETHW” or the “Fund”) is not suitable for all investors. An investment in ETHW is subject to a high degree of risk, has the potential for significant volatility, and could result in significant or complete loss of investment.
ETHW is not an investment company registered under the Investment Company Act of 1940 (the “1940 Act”) and is not afforded its protections.
Shares of ETPs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The NAV may not always correspond to the market price of ether and, as a result, Creation Units may be created or redeemed at a value that is different from the market price of the Shares. Authorized Participants’ buying and selling activity associated with the creation and redemption of Creation Units may adversely affect an investment in the Shares.
ETHW will not participate in the proof-of-stake validation mechanism to earn additional ether or seek other means of generating income from its ether holdings.
The amount of ether represented by a Share will continue to be reduced during the life of the Fund due to the transfer of the Fund’s ether to pay for the Sponsor’s management fee, and to pay for litigation expenses or other extraordinary expenses. This dynamic will occur irrespective of whether the trading price of the Shares rises or falls in response to changes in the price of ether.
There is no guarantee or assurance that the Fund’s methodology will result in the Fund achieving positive investment returns or outperforming other investment products.
Investors may choose to use the Fund as a means of investing indirectly in ether. An investment in the Fund is not a direct investment in ether. Because the value of the Shares is correlated with the value of the ether held by the Fund, it is important to understand the investment attributes of, and the market for, ether.
Ether Risk. There are significant risks and hazards inherent in the ether market that may cause the price of ether to fluctuate widely. The Fund’s ether may be subject to loss, damage, theft or restriction on access. Investors considering a purchase of Shares should carefully consider how much of their total assets should be exposed to the ether market, and should fully understand, be willing to assume, and have the financial resources necessary to withstand the risks involved in the Fund’s investment strategy.
Liquidity Risk. The market for ether is still developing and may be subject to periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the desired price. Possible illiquid markets may exacerbate losses or increase the variability between the Fund’s NAV and its market price. The lack of active trading markets for the Shares may result in losses on investors’ investments at the time of disposition of Shares.
Regulatory Risk. Future and current regulations by a
Blockchain Technology Risk. Certain of the Fund’s investments may be subject to the risks associated with investing in blockchain technology. The risks associated with blockchain technology may not fully emerge until the technology is widely used. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Because blockchain technology systems may operate across many national boundaries and regulatory jurisdictions, it is possible that blockchain technology may be subject to widespread and inconsistent regulation.
Nondiversification Risk. The Fund is nondiversified and will hold a single issue. As a result, a decline in the market value of a particular issue held by the Fund may affect the Fund’s value more than if it invested in a larger number of issuers.
Recency Risk. The Fund is recently organized, giving prospective investors a limited track record on which to base their investment decision. If the Fund is not profitable, the Fund may terminate and liquidate at a time that is disadvantageous to Shareholders.
Bitwise Investment Advisers, LLC serves as the sponsor of the Fund. Foreside Fund Services, LLC serves as the Marketing Agent for ETHW, and is not affiliated with Bitwise Investment Advisers, LLC, Bitwise, or any of its affiliates.
BITB Risks and Important Information
This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit BITBetf.com/prospectus.
The Bitwise Bitcoin ETF (“BITB” or the “Fund”) is not suitable for all investors. An investment in BITB is subject to a high degree of risk, has the potential for significant volatility, and could result in significant or complete loss of investment.
BITB is not an investment company registered under the Investment Company Act of 1940 (the “1940 Act”) and is not afforded its protections.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The NAV may not always correspond to the market price of bitcoin and, as a result, Creation Units may be created or redeemed at a value that is different from the market price of the Shares. Authorized Participants’ buying and selling activity associated with the creation and redemption of Creation Units may adversely affect an investment in the Shares.
The amount of bitcoin represented by a Share will continue to be reduced during the life of the Fund due to the transfer of the Fund’s bitcoin to pay for the Sponsor’s management fee, and to pay for litigation expenses or other extraordinary expenses. This dynamic will occur irrespective of whether the trading price of the Shares rises or falls in response to changes in the price of bitcoin.
There is no guarantee or assurance that the Fund’s methodology will result in the Fund achieving positive investment returns or outperforming other investment products.
Investors may choose to use the Fund as a means of investing indirectly in bitcoin. Because the value of the Shares is correlated with the value of the bitcoin held by the Fund, it is important to understand the investment attributes of, and the market for, bitcoin.
Bitcoin Risk. There are significant risks and hazards inherent in the bitcoin market that may cause the price of bitcoin to fluctuate widely. The Fund’s bitcoin may be subject to loss, damage, theft or restriction on access. Investors considering a purchase of Shares should carefully consider how much of their total assets should be exposed to the bitcoin market, and should fully understand, be willing to assume, and have the financial resources necessary to withstand the risks involved in the Fund’s investment strategy.
Liquidity Risk. The market for bitcoin is still developing and may be subject to periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the desired price. Possible illiquid markets may exacerbate losses or increase the variability between the Fund’s NAV and its market price. The lack of active trading markets for the Shares may result in losses on investors’ investments at the time of disposition of Shares.
Regulatory Risk. Future and current regulations by a
Blockchain Technology Risk. Certain of the Fund’s investments may be subject to the risks associated with investing in blockchain technology. The risks associated with blockchain technology may not fully emerge until the technology is widely used. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Because blockchain technology systems may operate across many national boundaries and regulatory jurisdictions, it is possible that blockchain technology may be subject to widespread and inconsistent regulation.
Nondiversification Risk. The Fund is nondiversified and may hold a smaller number of portfolio securities than many other products. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers.
Recency Risk. The Fund is recently organized, giving prospective investors a limited track record on which to base their investment decision. If the Fund is not profitable, the Fund may terminate and liquidate at a time that is disadvantageous to Shareholders.
Bitwise Investment Advisers, LLC serves as the sponsor of the Fund. Foreside Fund Services, LLC serves as the Marketing Agent for BITB, and is not affiliated with Bitwise Investment Advisers, LLC, Bitwise, or any of its affiliates.
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1 Until January 22, 2025, the Sponsor has waived its fee on the first
2 Source: CoinMarketCap.com as of June 30, 2024.
3 ETHW does not invest in Nike or JPMorgan.
4 Source: The Block, DeFi Llama, and Coin Metrics as of June 30, 2024. DeFi market size refers to total value locked (TVL) on decentralized finance applications.
5 Source: CoinMarketMap as of June 30, 2024.
6 Source: Bloomberg.
7 Source: NYSE. https://www.nyse.com/data-insights/2023-the-year-in-us-etps-part-1
View source version on businesswire.com: https://www.businesswire.com/news/home/20240723353039/en/
Media
Frank Taylor/Stephanie Dressler
Dukas Linden Public Relations
Bitwise@DLPR.com
Source: Bitwise Asset Management
FAQ
What is the ticker symbol and management fee for the Bitwise Ethereum ETF?
How does ETHW compare to Bitwise's bitcoin ETP, BITB?
What unique feature does ETHW offer regarding Ethereum development?
How many publicly traded crypto funds does Bitwise now offer with the launch of ETHW?
What are the key risks associated with investing in ETHW?
