Uniswap ETF Bid: What It Means for Traditional Investment

Bitwise Asset Management submitted a proposal to introduce a novel exchange-traded fund (ETF) focused on Uniswap to the U.S. regulatory authorities. With this move, Bitwise aims to provide conventional investors with indirect exposure to Uniswap’s native token, UNI.

Bitwise Sets Its Sights on Uniswap-Linked ETF

Operating as a notable entity in the crypto asset management arena, Bitwise seeks to offer diversification opportunities across various digital assets. Their impending Uniswap ETF is specifically designed to make direct investments in the UNI token tied to the Uniswap protocol.

This initiative signals a pivotal development for Uniswap, which is a prominent decentralized finance platform functioning on the Ethereum blockchain. Uniswap’s involvement underscores its vital role in the DeFi ecosystem.

Will SEC Give the Green Light?

Before Bitwise advanced its ETF application, it had already laid groundwork by forming a fund trust in Delaware on January 27. This step is frequently essential before advancing to a federal submission. Presently, attention pivots toward the U.S. Securities and Exchange Commission (SEC) decision on the matter.

If the SEC endorses the fund, Coinbase Custody Trust Company is expected to offer custodial services for the ETF. Interestingly, the proposal was made shortly after the SEC concluded its investigation into Uniswap Labs in February 2025.

“We aim to bridge traditional investment with important DeFi projects,” stated a Bitwise spokesperson, highlighting the firm’s forward-thinking strategy.

Previously, the SEC raised allegations against Uniswap Labs for vending unregistered securities and conducting an unregistered exchange. However, the investigation was eventually dismissed.

Uniswap’s UNI token recently endured a substantial 16.59% drop, hitting $3.15, amid rampant market sell-offs. The broader market saw a 9.84% reduction in overall capitalization during the same period. In contrast, the extended liquidation of $1.03 billion in Bitcoin long positions has temporarily strained the market.

Key takeaways from the current market situation include:

• The UNI token’s value is presently around $3.25.
• A significant slump in overall crypto market capitalization.
• The Fear and Greed Index has fallen to “Extreme Fear,” positioned at 5.

While speculation surrounds the potential upswing in investor interest if the ETF is approved, the final word from the SEC, and therefore the ETF’s fate, remains in the balance.