Uniswap ETF Filed by Bitwise Despite UNI Price Collapse

Bitwise has officially filed for the first Uniswap spot ETF in the United States, a major step for regulated DeFi investing, even as UNI price sinks to a five-year low.

Key Takeaways

• Bitwise submitted a proposal to the SEC for a spot Uniswap ETF, aiming to give investors regulated access to UNI.
• Despite the positive development, UNI’s price has fallen sharply, dropping over 10 percent in 24 hours and hitting a five-year low.
• Technical indicators reflect strong bearish momentum, with UNI’s futures and funding data showing weakening trader confidence.
• The filing follows the SEC’s recent closure of its investigation into Uniswap Labs, possibly paving the way for ETF approval.

What Happened?

Bitwise, one of the leading digital asset management firms, has filed a registration statement with the U.S. Securities and Exchange Commission for the Bitwise Uniswap ETF. If approved, it would become the first spot ETF tracking UNI, the governance token of the Uniswap protocol. However, the news did little to lift market sentiment as UNI continued its downward slide, reaching lows not seen in five years.

Bitwise Takes the Leap Toward Regulated DeFi Exposure

The Uniswap ETF filing signals a bold effort by Bitwise to bridge the gap between traditional finance and decentralized protocols. The ETF would be structured under a Delaware statutory trust, holding UNI as its primary asset. According to the S-1 filing, Coinbase Custody Trust Company would serve as the custodian, eliminating the need for investors to handle private keys.

Bitwise explained that the ETF’s objective is to provide exposure to the value of UNI, net of fund expenses and liabilities. The structure appeals to traditional investors seeking a regulated vehicle to gain access to DeFi assets.

While staking is not part of the initial fund setup, Bitwise has left the door open to potentially include it in future iterations.

UNI Faces Strong Bearish Pressure Despite ETF News

Despite the promising ETF announcement, UNI’s price plunged 14 percent in 24 hours, sliding as low as $2.8 before slightly recovering to $3.41.

Image Credit – CoinGecko.com

The asset now trades in a persistent downtrend, and technical signals suggest continued bearish pressure:

• The Chaikin Money Flow remains negative at -0.21, pointing to sustained capital outflows.
• The Awesome Oscillator shows deep red histogram bars, with a reading of -0.514, signaling strong selling momentum.
• The long/short ratio has dropped to 0.9, indicating bearish dominance in the derivatives market.
• UNI’s futures open interest has declined 8 percent, now at $212 million, with a negative funding rate confirming that short positions outweigh long ones.

Traders are watching the $3.95 resistance level closely. A failure to reclaim this zone could push UNI below the $2 mark, adding to investor concerns.

ETF Arrives in Context of Broader Regulatory Shifts

The timing of this filing is significant. It comes just months after the SEC concluded its investigation into Uniswap Labs in 2025, an event that removed a major regulatory overhang for DeFi protocols. This may have given Bitwise the confidence to proceed with this proposal.

The Uniswap ETF also joins a wave of new altcoin-focused ETFs, with recent spot products introduced for XRP, SOL, DOGE, LINK, LTC, ZEC, and ADA. Bitwise’s latest move shows growing institutional appetite for protocol-based crypto assets, despite broader market hesitancy.

CoinLaw’s Takeaway

In my experience, ETF filings like this usually create some level of hype, especially when they’re the first of their kind, but what we’re seeing with UNI tells a different story. The disconnect between major product news and market reaction is glaring. I found it surprising that even Wall Street interest couldn’t stop UNI from crashing to multi-year lows. It’s a reminder that sentiment and structure are two different things in crypto. The ETF is a long-term win for Uniswap and DeFi, but in the short run, bears still have control. That said, this could be a huge opportunity for institutions ready to get in early.

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