Bitwise Files for Spot Uniswap ETF as Daily UNI Burn Hits Record High, Yet Price Falls 15%
Bitwise Investments has taken a serious step towards bringing Uniswap (UNI) to the broader monetary market, submitting an S-1 registration with the US SEC (Securities and Exchange Commission) for a spot Uniswap ETF.
The announcement marks a possible milestone for UNI adoption in institutional portfolios, but the token’s worth nonetheless struggles.
Bitwise Filed for a Spot Uniswap ETF as Daily UNI Burn Hits a New High
Bitwise just lately registered the “Bitwise Uniswap ETF” entity in Delaware, a procedural transfer similar to earlier spot ETF filings.
“With the regulatory clouds cleared and Bitwise main the cost, $UNI is about to grow to be a staple in each institutional portfolio,” Whale Factor remarked.
The proposed fund, if accepted, would observe UNI’s spot worth, excluding bills, with Coinbase Custody serving as the custodian.
At launch, the ETF wouldn’t embody staking, signaling an easy publicity product for traders.
The submitting coincides with notable on-chain exercise. Daily UNI burns have surged sharply in February, based on Dune Analytics, alongside larger Uniswap buying and selling charges.
As of early February, over 100 million UNI tokens have been burned, valued at roughly $597 million, with the annualized burn price exceeding $36 million.
Daily charts point out that the tempo of UNI burning is accelerating, reflecting robust buying and selling exercise and the impression of the protocol’s Fee Switch, which converts a portion of buying and selling charges into burned UNI.
Despite these metrics, UNI’s worth has remained comparatively subdued, down by nearly 15% over the past 24 hours.
As of this writing, the UNI token was buying and selling at $3.20, down 13.73% amid broader market bearish sentiment.
Whales Accumulate UNI Amid Fee Switch Uncertainty and Rising Exchange Flows
Notwithstanding, on-chain knowledge reveals that giant traders are strategically accumulating the token. Lookonchain reported that whale handle 0x9671 offered 242 XAUT ($1.19 million) and 461 ETH ($985,000) to buy 682,087 UNI price $2.58 million.
This highlights confidence in UNI’s medium-term upside. However, analysts stay divided on whether or not the Fee Switch’s early efficiency justifies optimism.
BeInCrypto reported in December that preliminary income from the Fee Switch fell short of governance expectations, with some analysts questioning whether or not the early knowledge displays flawed assumptions or just incomplete rollout results.
Uniswap founder Hayden Adams cautioned that “conclusions are untimely and primarily based on deceptive assumptions,” suggesting the protocol’s long-term income potential might not but be totally realized.
At the identical time, the quantity of UNI flowing to exchanges continues to rise, signaling potential promoting stress.
CryptoQuant knowledge reveals that Uniswap reserves on exchanges have climbed, elevating considerations that worth assist could possibly be examined if promoting intensifies.
Historical tendencies illustrate that larger exchange inflows usually precede short-term volatility, even amid robust protocol fundamentals.
Overall, the Bitwise spot Uniswap ETF submitting and the accelerating UNI burn point out rising institutional curiosity and protocol exercise.
While on-chain metrics sign robust engagement and lively charge era, market forces, such as elevated UNI inflows to exchanges and ongoing worth weak spot, counsel volatility might stay elevated within the close to time period.
As the SEC critiques the ETF utility, traders shall be watching intently to see if this product opens the door for wider mainstream adoption of UNI, doubtlessly offering a bridge between DeFi liquidity and conventional capital markets.
The put up Bitwise Files for Spot Uniswap ETF as Daily UNI Burn Hits Record High, Yet Price Falls 15% appeared first on BeInCrypto.
