Bitwise Launches ETHW Spot Ethereum ETF

Bitwise’s ETHW is one of several spot Ethereum exchange-traded funds (ETFs) set to start trading in the U.S. on Tuesday. The crypto asset manager has announced that 10% of profits from the ETF will be donated to Ethereum developers.

The donations will be allocated to two organizations: Protocol Guild and PBS Foundation.

• Protocol Guild: A grassroots funding entity supporting over 170 core contributors focused on Ethereum’s research and development.
• PBS Foundation: A non-profit that funds open-source Ethereum block relays and related research.

Bitwise CTO Hong Kim commented, “Every investor in ETHW wants Ethereum to continue to advance, and this donation program contributes to that goal.”

ETHW will trade on the NYSE, with Coinbase as its digital asset custodian. The fund will maintain a management fee of 0.2%, which will be waived for the first six months on the first $500 million in assets.

This initiative follows a similar one from January when Bitwise launched its BITB spot Bitcoin ETF, which donates 10% of its profits to three non-profits focused on Bitcoin development: Brink, OpenSats, and the Human Rights Foundation’s Bitcoin Development Fund, with annual donations planned for at least the next ten years.

To enhance transparency, Bitwise has made its Bitcoin addresses publicly available for ETF holdings and will disclose its Ethereum addresses for ETHW holdings on Monday.

Spot Ethereum ETFs Given Final Approval

On Monday, registration statements became effective for firms wishing to launch spot Ethereum ETFs, receiving final approval from the U.S. Securities and Exchange Commission. Firms granted approval include 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco, along with the Grayscale Ethereum Trust and Grayscale Ethereum Mini Trust.

Bitwise’s ETHW launch comes six months after its BITB product, which has generated over $2.2 billion in net inflows and manages $2.7 billion in assets.

Bitwise CIO Matt Hougan remarked, “Making bitcoin available in an exchange-traded format brought more than $17 billion of new investment into crypto in a matter of months. We believe this launch will bring in billions more and drive ether to new all-time highs in 2024.”

He added that Bitcoin and Ether serve different roles in an investment portfolio. While Bitcoin resembles a monetary asset, Ether functions more like a high-growth tech stock, powering significant innovations like DeFi, NFTs, and stablecoins.

Hougan predicts that U.S. spot Ethereum ETFs could attract $15 billion in net inflows within the first 18 months, potentially pushing Ether prices to over $5,000 by year-end.