Bitwise Asset Management has introduced the Bitwise Ethereum ETF (ETHW) on the New York Stock Exchange, providing investors direct exposure to Ethereum (CRYPTO:ETH), the second-largest Web3 ecosystem by market capitalisation.
To support the Ethereum network, Bitwise will donate 10% of ETHW profits to Protocol Guild and PBS Foundation, organisations crucial for Ethereum's development and infrastructure.
Hong Kim, Bitwise's CTO, emphasised the importance of supporting the Ethereum community, noting that ETHW investors are invested in Ethereum's progress.
This donation initiative reflects Ethereum’s open-source nature and the vital role played by its developer community.
Following the success of Bitwise’s Bitcoin ETF (BITB), which garnered $2.7 billion in assets within six months, the firm anticipates that the introduction of spot Ethereum ETPs will drive significant investment into Ethereum, potentially pushing its value to new highs.
Matt Hougan, Bitwise CIO, emphasised that Ethereum ETPs could bring billions in new investments, enhancing the cryptocurrency's market position.
ETHW offers a competitive management fee of 0.20%, with the fee waived for the first six months on up to $500 million in assets to attract investors.
The fund will utilise Coinbase Custody Trust Company as its digital asset custodian, Bank of New York Mellon as administrator, and KPMG as auditor, ensuring transparency and reliability.
The Ethereum blockchain’s growing significance is evident through its adoption by major brands like Nike, Starbucks, and JPMorgan.
As Ethereum remains a leading platform for stablecoins and decentralised finance (DeFi), the launch of ETHW signifies a step towards mainstream adoption of Ethereum investment products.
Investors should be aware that ETHW is not registered under the Investment Company Act of 1940 and does not fall under its regulations.
Thorough research and consideration of risk tolerance are advised before investing in cryptocurrency-based products.