- Bitwise has filed with the SEC to launch the first ETF focused on Uniswap, signaling growing institutional interest in DeFi.
- However, UNI fell by over 16% amid a broader crypto market sell-off and heightened investor fear.
Bitwise has taken a major step toward bringing decentralized finance closer to traditional investors. The firm has officially filed an S-1 registration statement with the SEC to launch an ETF focused entirely on Uniswap, the largest decentralized exchange on Ethereum. The filing makes Bitwise the first asset manager to seek approval for a Uniswap-specific ETF, marking a notable development for the DeFi sector.
The proposed fund aims to track the value of Uniswap’s governance token, UNI, minus operational expenses and liabilities. According to the filing, the ETF would provide investors with direct exposure to UNI without requiring them to hold or manage the token themselves. If approved, Coinbase Custody Trust Company would serve as the custodian, adding a familiar institutional name to the structure.
From Delaware Trust to SEC Filing
Before submitting the S-1, Bitwise registered a Delaware statutory trust on January 27. This step is commonly used by asset managers as a legal foundation ahead of a formal SEC filing. The move signaled Bitwise’s intention to pursue a DeFi-linked ETF well before the application became public.
The timing is also notable given Uniswap’s regulatory history. In early 2025, the SEC dropped its investigation into Uniswap Labs, which had previously faced allegations related to operating an unregistered securities exchange and issuing an unregistered security. That regulatory pullback appears to have cleared some uncertainty, potentially opening the door for products tied to the protocol.
UNI Drops as Crypto Markets Slide
Despite the long-term implications of the ETF filing, the immediate market reaction for UNI was sharply negative. The token fell more than 16% in 24 hours, sliding to around $3.15 and underperforming the broader crypto market. The decline came amid a widespread sell-off that saw the total cryptocurrency market capitalization drop nearly 10% over the same period.
Market conditions worsened after more than $1 billion in Bitcoin long positions were liquidated, forcing leveraged traders to unwind positions across multiple assets. The Crypto Fear and Greed Index plunged to an “Extreme Fear” reading, reflecting heightened caution among investors.
A Milestone for DeFi, Despite Short-Term Pressure
While UNI’s price action reflects short-term market stress, the ETF filing itself represents a meaningful milestone for decentralized finance. A Uniswap-focused ETF would give traditional investors regulated exposure to a core DeFi protocol, potentially broadening participation beyond crypto-native users.
As the SEC reviews Bitwise’s application, attention will remain split between regulatory outcomes and ongoing market volatility. For now, the filing underscores growing institutional interest in DeFi, even as prices struggle in a challenging market environment.
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