Bitwise Asset Management, one of the largest crypto index fund managers in the U.S., has announced the filing of Form 8-As for two new Ethereum futures Exchange Traded Funds (ETFs), AETH and BTOP, on Friday. The ETFs are set to list and begin trading on Monday, October 2, 2023.
The Bitwise Ethereum Strategy ETF (ticker: AETH) will invest in regulated Chicago Mercantile Exchange (CME) Ethereum futures focused on front-month contracts. Meanwhile, the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (ticker: BTOP) plans to invest with equal exposure to regulated CME Bitcoin futures and CME Ether futures. Bank of New York Mellon (NYSE:BK) will serve as the fund custodian for both products, with a cumulative expense ratio of 0.85%.
The filings come amidst an environment of increased regulatory uncertainty, with the U.S. Securities and Exchange Commission (SEC) recently delaying verdict deadlines for all requests for Bitcoin (BTC) and Ethereum (ETH) spot-based exchange-traded funds. This delay has impacted requests from top-tier U.S. asset managers including Grayscale, Ark, 21Shares, BlackRock (NYSE:BLK), Invesco, Bitwise and Valkyrie.
Bitwise is known for its focus on partnering with financial advisors and investment professionals to provide quality education and research in the crypto asset space. The firm offers both index and active strategies across a wide array of investment vehicles, spanning Bitcoin, Ethereum, DeFi, NFTs, the Metaverse, and crypto-focused equity indexes.
Investors should note that investing in these ETFs involves risk, including potential loss of principal. The ETFs will invest in Bitcoin Futures Contracts and Ether Futures Contracts but will not invest directly in or hold either bitcoin or Ethereum. The market for Bitcoin and Ether Futures Contracts is still developing and may be subject to periods of illiquidity, making it potentially difficult to buy or sell a position at the desired price during periods of market volatility or disruption.
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