Bitwise Files for Two Ethereum Futures ETFs, Adding to Growing Interest in Cryptocurrency Investment Products

Bitwise Files for Two Ethereum Futures ETFs, Adding to Growing Interest in Cryptocurrency Investment Products

Bitwise has recently submitted applications for two exchange-traded funds (ETFs) focused on Ethereum futures, further contributing to the increasing number of such requests in the market.

The latest offerings from the company comprise the “Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF” and the previously unveiled “Bitwise Bitcoin and Ether Equal Weight Strategy ETF,” as disclosed by Bloomberg ETF analyst James Seyffart.

The primary objective of the “Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF” is to provide investors with exposure to Bitcoin and Ether futures contracts, based on their respective market capitalization, without direct investment in the cryptocurrencies themselves.

The management of these ETFs falls under the purview of Bitwise Investment Manager and Vident Advisory, with the allocation between Bitcoin and Ether futures contracts being determined by their market cap and rebalanced on a monthly basis.

Both ETFs predominantly invest in cash-settled, front-month futures contracts, with the potential inclusion of back-month contracts. The filing emphasizes the standardized, cash-settled nature of these futures contracts, which are traded on the Chicago Mercantile Exchange (CME).

With Bitwise’s applications now in the mix, the total number of Ethereum futures ETF filings reaches twelve, underscoring the sustained interest in this particular financial product.

According to Coincu’s report, Proshares and Bitwise have jointly submitted three futures ETF applications related to “Bitcoin and Ethereum” to the Securities and Exchange Commission (SEC).

Additionally, Direxion has filed its own application for the “Direxion Bitcoin Ether Strategy ETF.” Notably, six other companies have also pursued applications for Ethereum futures ETFs, including Volatility Shares, Roundhill, VanEck, Grayscale, and Proshares.

The SEC is anticipated to make decisions on these applications by October 16, with a separate deadline of October 11 set for the Volatility Shares application.

The flurry of applications reflects the surging demand for investment products tied to cryptocurrencies and highlights the ongoing growth and maturation of the crypto-financial market.