Bitwise’s eighth publicly traded crypto fund, ETHW, has a management fee of 0.20%, is publishing the fund’s public wallet addresses for transparency, and will donate 10% of annual profits to Ethereum open-source developers
Crypto specialist Bitwise Asset Management announced today the launch of the Bitwise Ethereum ETF (ticker: ETHW) on the New York Stock Exchange. ETHW has a low management fee of 0.20%, with the fee set to 0% for the first six months on the first $500 million in assets.1 The fund invests directly in ether (ETH), the world's second-largest crypto asset2 and the driving force behind the Ethereum blockchain.
Investors should note that, unlike many other exchange-traded products, ETHW is not registered under the Investment Company Act of 1940 and is not subject to its regulations.
“The World’s Most Interesting Crypto Asset”
“We believe Ethereum is the world's most interesting blockchain, and an exchange-traded product gives investors much-awaited exposure to its potential,” said Bitwise CIO Matt Hougan. “Investing in ETH is like making a 'picks and shovels' investment in the underlying infrastructure behind tokenization, stablecoins, DeFi, NFTs, decentralized social media, and other killer apps in the blockchain space. Ethereum is also the platform of choice for big brands like Nike, JPMorgan, and others as they experiment with public blockchains.3 And now, thanks to ETHW, investors can gain exposure to Ethereum's growth potential and diversify their crypto exposure with the ease and familiarity of buying a stock.”
Ethereum has become the primary platform for stablecoins and DeFi, whose markets today are around $150 billion each.4 Growing awareness of Ethereum’s potential has driven ETH, the asset that powers it, to a market cap of more than $400 billion—second only to bitcoin among digital assets.5
ETHW: Blockchain-Native Features, Managed by Veteran Crypto Asset Manager
ETHW features several key characteristics:
- 10% of gross profits to be donated to Ethereum open-source developers. Bitwise has committed to donating 10% of all ETHW profits to two organizations: Protocol Guild, a grassroots funding organization that supports more than 170 core contributors to Ethereum Layer 1 protocol research and development, and PBS Foundation, a non-profit that funds open-source Ethereum block relays and surrounding research. “Ethereum, as an open-source technology, is maintained by a dedicated community of open-source developers,” said Hong Kim, Bitwise’s Chief Technology Officer. “Every investor in ETHW wants Ethereum to continue to advance, and this donation program contributes to that goal.”
- Builds on the historic success of Bitwise’s spot bitcoin ETP. ETHW’s debut comes just over six months after the launch of Bitwise’s first spot bitcoin ETP, BITB, which became one of the top 25 fastest-growing exchange-traded products of all time.6 Today, BITB has more than $2.7 billion in assets and is one of the most liquid bitcoin ETPs. BITB is not registered under the Investment Company Act of 1940 and is not subject to its regulations.
- Built by a crypto specialist firm. Investors in ETHW gain access not only to a product built with Bitwise’s specialist expertise, but high-quality insights, industry-leading research, and a nationwide distribution team they can call on to understand what’s happening in the industry.
- Becomes Bitwise’s 20th crypto product. Bitwise’s comprehensive array of crypto products grows to 20 with the addition of ETHW. It joins a suite that features seven other publicly traded funds—including the world’s largest crypto index fund—along with separately managed accounts, private placement vehicles, and multi-strategy solutions.
“2024 has been a landmark year for crypto as it moves firmly into the mainstream,” said Bitwise CEO Hunter Horsley. “The launch of both spot Bitcoin and spot Ethereum ETPs has opened up crypto’s groundbreaking potential to millions of people through one of the most popular investment vehicles in the world.7 The debut of the Bitwise Ethereum ETF reinforces the core mission that has driven us since 2017: Day in and day out, we’re here to help people understand and access the opportunities in crypto.”
Bitwise Offers Wide Range of Crypto Insights
In addition to its expansive product suite, Bitwise offers a wide range of insights, including the Weekly CIO Memo, topical white papers, interactive tools, and other key resources—including an Ethereum library—available in the Bitwise Expert Portal.
ETHW and BITB are not suitable for all investors. An investment in ETHW or BITB is subject to a high degree of risk, has the potential for significant volatility, and could result in significant or complete loss of investment.
To view the Fund's prospectus, click here.
To learn more about ETHW, visit ethwetf.com.
Risks and Important Information
This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit ETHWetf.com/prospectus.
The Bitwise Ethereum ETF (“ETHW” or the “Fund”) is not suitable for all investors. An investment in ETHW is subject to a high degree of risk, has the potential for significant volatility, and could result in significant or complete loss of investment.
ETHW is not an investment company registered under the Investment Company Act of 1940 (the “1940 Act”) and is not afforded its protections.
Shares of ETPs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The NAV may not always correspond to the market price of ether and, as a result, Creation Units may be created or redeemed at a value that is different from the market price of the Shares. Authorized Participants’ buying and selling activity associated with the creation and redemption of Creation Units may adversely affect an investment in the Shares.
ETHW will not participate in the proof-of-stake validation mechanism to earn additional ether or seek other means of generating income from its ether holdings.
The amount of ether represented by a Share will continue to be reduced during the life of the Fund due to the transfer of the Fund’s ether to pay for the Sponsor’s management fee, and to pay for litigation expenses or other extraordinary expenses. This dynamic will occur irrespective of whether the trading price of the Shares rises or falls in response to changes in the price of ether.
There is no guarantee or assurance that the Fund’s methodology will result in the Fund achieving positive investment returns or outperforming other investment products.
Investors may choose to use the Fund as a means of investing indirectly in ether. An investment in the Fund is not a direct investment in ether. Because the value of the Shares is correlated with the value of the ether held by the Fund, it is important to understand the investment attributes of, and the market for, ether.
Ether Risk. There are significant risks and hazards inherent in the ether market that may cause the price of ether to fluctuate widely. The Fund’s ether may be subject to loss, damage, theft or restriction on access. Investors considering a purchase of Shares should carefully consider how much of their total assets should be exposed to the ether market, and should fully understand, be willing to assume, and have the financial resources necessary to withstand the risks involved in the Fund’s investment strategy.
Liquidity Risk. The market for ether is still developing and may be subject to periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the desired price. Possible illiquid markets may exacerbate losses or increase the variability between the Fund’s NAV and its market price. The lack of active trading markets for the Shares may result in losses on investors’ investments at the time of disposition of Shares.
Regulatory Risk. Future and current regulations by a U.S. or foreign government or quasi-governmental agency could have an adverse effect on an investment in the Fund.
Blockchain Technology Risk. Certain of the Fund’s investments may be subject to the risks associated with investing in blockchain technology. The risks associated with blockchain technology may not fully emerge until the technology is widely used. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Because blockchain technology systems may operate across many national boundaries and regulatory jurisdictions, it is possible that blockchain technology may be subject to widespread and inconsistent regulation.
Nondiversification Risk. The Fund is nondiversified and will hold a single issue. As a result, a decline in the market value of a particular issue held by the Fund may affect the Fund’s value more than if it invested in a larger number of issuers.
Recency Risk. The Fund is recently organized, giving prospective investors a limited track record on which to base their investment decision. If the Fund is not profitable, the Fund may terminate and liquidate at a time that is disadvantageous to Shareholders.
Bitwise Investment Advisers, LLC serves as the sponsor of the Fund. Foreside Fund Services, LLC serves as the Marketing Agent for ETHW, and is not affiliated with Bitwise Investment Advisers, LLC, Bitwise, or any of its affiliates.
BITB Risks and Important Information
This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit BITBetf.com/prospectus.
The Bitwise Bitcoin ETF (“BITB” or the “Fund”) is not suitable for all investors. An investment in BITB is subject to a high degree of risk, has the potential for significant volatility, and could result in significant or complete loss of investment.
BITB is not an investment company registered under the Investment Company Act of 1940 (the “1940 Act”) and is not afforded its protections.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The NAV may not always correspond to the market price of bitcoin and, as a result, Creation Units may be created or redeemed at a value that is different from the market price of the Shares. Authorized Participants’ buying and selling activity associated with the creation and redemption of Creation Units may adversely affect an investment in the Shares.
The amount of bitcoin represented by a Share will continue to be reduced during the life of the Fund due to the transfer of the Fund’s bitcoin to pay for the Sponsor’s management fee, and to pay for litigation expenses or other extraordinary expenses. This dynamic will occur irrespective of whether the trading price of the Shares rises or falls in response to changes in the price of bitcoin.
There is no guarantee or assurance that the Fund’s methodology will result in the Fund achieving positive investment returns or outperforming other investment products.
Investors may choose to use the Fund as a means of investing indirectly in bitcoin. Because the value of the Shares is correlated with the value of the bitcoin held by the Fund, it is important to understand the investment attributes of, and the market for, bitcoin.
Bitcoin Risk. There are significant risks and hazards inherent in the bitcoin market that may cause the price of bitcoin to fluctuate widely. The Fund’s bitcoin may be subject to loss, damage, theft or restriction on access. Investors considering a purchase of Shares should carefully consider how much of their total assets should be exposed to the bitcoin market, and should fully understand, be willing to assume, and have the financial resources necessary to withstand the risks involved in the Fund’s investment strategy.
Liquidity Risk. The market for bitcoin is still developing and may be subject to periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the desired price. Possible illiquid markets may exacerbate losses or increase the variability between the Fund’s NAV and its market price. The lack of active trading markets for the Shares may result in losses on investors’ investments at the time of disposition of Shares.
Regulatory Risk. Future and current regulations by a U.S. or foreign government or quasi-governmental agency could have an adverse effect on an investment in the Fund.
Blockchain Technology Risk. Certain of the Fund’s investments may be subject to the risks associated with investing in blockchain technology. The risks associated with blockchain technology may not fully emerge until the technology is widely used. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Because blockchain technology systems may operate across many national boundaries and regulatory jurisdictions, it is possible that blockchain technology may be subject to widespread and inconsistent regulation.
Nondiversification Risk. The Fund is nondiversified and may hold a smaller number of portfolio securities than many other products. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers.
Recency Risk. The Fund is recently organized, giving prospective investors a limited track record on which to base their investment decision. If the Fund is not profitable, the Fund may terminate and liquidate at a time that is disadvantageous to Shareholders.
Bitwise Investment Advisers, LLC serves as the sponsor of the Fund. Foreside Fund Services, LLC serves as the Marketing Agent for BITB, and is not affiliated with Bitwise Investment Advisers, LLC, Bitwise, or any of its affiliates.
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1 Until January 22, 2025, the Sponsor has waived its fee on the first $500 million in assets. Other fees such as brokerage and commission expenses may apply.
2 Source: CoinMarketCap.com as of June 30, 2024.
3 ETHW does not invest in Nike or JPMorgan.
4 Source: The Block, DeFi Llama, and Coin Metrics as of June 30, 2024. DeFi market size refers to total value locked (TVL) on decentralized finance applications.
5 Source: CoinMarketMap as of June 30, 2024.
6 Source: Bloomberg.
7 Source: NYSE. https://www.nyse.com/data-insights/2023-the-year-in-us-etps-part-1
View source version on businesswire.com: https://www.businesswire.com/news/home/20240723353039/en/
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