“AETH and BTOP unlock access to the world’s most interesting crypto asset with confidence, through regulated ETFs,” said Bitwise CEO Hunter Horsley. “The two funds continue to expand Bitwise’s leading suite of crypto products, providing investors with a wide set of options for accessing opportunities in the space.”
Bitwise Asset Management, the largest crypto index fund manager in America, announced the launch of two groundbreaking Ethereum-themed ETFs: the Bitwise Ethereum Strategy ETF (ticker: AETH) and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF. With the launch, investors can for the first time gain exposure to Ethereum futures through the widely popular and regulated ETF format.
“The portfolio opportunity with Ethereum is broader than bitcoin”
“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.1 AETH and BTOP give investors the opportunity to participate in that growth with confidence through regulated ETFs.”
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Ethereum-based applications have seen considerable progress in recent years. Stablecoins—a payments alternative to card networks, the Automated Clearing House (ACH) and SWIFT—processed more than $1 trillion in transactions in Q1 2023 alone and have grown from virtual nonexistence in 2019 to a $125 billion market today.2 Similarly, total capital deposited across decentralized finance (DeFi) applications built on Ethereum has risen 6,000-fold since 2019, to $40 billion today.3
“The portfolio opportunity with Ethereum is broader than bitcoin,” said Bitwise CIO Matt Hougan. “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.4 That combination makes Ethereum a distinct asset in portfolios.”
Historical performance data reinforces Ethereum’s distinct return pattern relative to stocks. Over the past five years, Ethereum has had the following median correlations with major equity indexes:
- Large cap equities (S&P 500 Index): 0.28.
- Blue-chip tech stocks (Nasdaq-100 Index): 0.33.
- Small-cap equities (Russell 2000 Index): 0.24.5
Hougan added: “We find that, to some investors, Ethereum makes more intuitive sense than bitcoin. 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.”
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A Leader in Crypto ETFs
The launch of the Bitwise Ethereum Strategy ETF (ticker: AETH) and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (ticker: 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 ETFs:
- Bitwise Crypto Industry Innovators ETF (ticker: BITQ)
- Bitwise Bitcoin Strategy Optimum Roll ETF (ticker: BITC)
- Bitwise Web3 ETF (ticker: BWEB)
- Bitwise Ethereum Strategy ETF (ticker: AETH)
- Bitwise Bitcoin and Ether Equal Weight Strategy ETF (ticker: BTOP)
Bitwise’s other product offerings include the Bitwise 10 Crypto Index Fund (ticker: BITW), private placement funds, multi-strategy solutions, and separately managed accounts.
The Bitwise Ethereum Strategy ETF (ticker: AETH)
The Bitwise Ethereum Strategy ETF (ticker: AETH) invests in regulated CME Ether futures focused on front-month contracts. The fund custodian is Bank of New York Mellon, and the expense ratio is 0.85%.
The Bitwise Bitcoin and Ether Equal Weight Strategy ETF (ticker: BTOP)
The Bitwise Bitcoin and Ether Equal Weight Strategy ETF (ticker: BTOP) provides equal exposure to regulated CME Bitcoin Futures and CME Ether futures. The fund custodian is Bank of New York Mellon, and the expense ratio is 0.85%.
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