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Bitwise Asset Management filed an application with the U.S. Securities and Exchange Commission on February 5 to launch the first spot exchange-traded fund tracking Uniswap’s UNI governance token, marking a potential milestone in bringing decentralized finance assets into regulated investment products.
The proposed product, called the Bitwise Uniswap ETF, is structured as a trust designed to hold UNI tokens as its primary asset. According to the registration statement, shares would trade on a US exchange under a ticker yet to be announced.
With each share representing a fractional interest in the trust’s UNI holdings. Coinbase Custody Trust Company would serve as custodian. In its filing, Bitwise said the fund’s goal is to give investors exposure to UNI “without requiring them to directly purchase, store, or secure the tokens themselves.”
Bitwise Investment Advisers, registration statement filed with the SEC.
If approved, the ETF would be the first regulated US fund focused on a DeFi protocol’s governance token. Uniswap is one of the largest decentralized exchanges on Ethereum, facilitating billions of dollars in on-chain trading volume and serving as a core piece of DeFi infrastructure.
The filing signals a gradual normalization of DeFi assets within traditional financial wrappers, following the approval of spot Bitcoin and Ether ETFs in previous years.
Despite the symbolic importance of the filing, UNI’s price failed to rally on the news. On the day of the announcement, the token fell more than 14%, trading around $3.22, reflecting a broader risk-off mood across altcoins.
The muted reaction highlights a growing divide between long-term institutional positioning and short-term market sentiment. While ETF filings suggest confidence in the future relevance of DeFi, investors appear reluctant to price in regulatory approval or immediate inflows.
Analysts note that an SEC filing is only the first step in a potentially lengthy process.
“These filings are a good sign because they show SEC engagement, not because approval is guaranteed or imminent”
Eric Balchunas, senior ETF analyst, Bloomberg Intelligence, wrote in a post on X.
Historically, crypto ETF approvals have taken months, if not longer, and several proposals have stalled or been withdrawn due to regulatory concerns.
The significance of the Bitwise Uniswap ETF extends beyond UNI’s short-term price action. Approval would set a precedent for regulated investment products tied directly to DeFi governance tokens, potentially paving the way for similar ETFs linked to protocols such as Aave or Chainlink.
At the same time, the filing underscores the SEC’s ongoing challenge in balancing investor protection with innovation.
DeFi tokens raise unique questions around governance rights, protocol risks, and regulatory classification issues that are less pronounced with Bitcoin-based products.
The filing also notes that the ETF would launch without staking, though Bitwise left open the possibility of adding staking features later, subject to regulatory approval. That decision reflects regulators’ heightened scrutiny of yield-bearing crypto products.
The takeaway is twofold: institutional interest in DeFi is clearly growing, but regulatory clarity remains the gating factor.
Whether or not the Bitwise Uniswap ETF is approved, the application itself signals that asset managers see long-term value in bringing DeFi assets into compliant, exchange-traded structures.
As the SEC reviews the filing, the broader market will be watching closely, not just for UNI’s future, but for what the decision could mean for the next phase of crypto’s integration into traditional finance.
