Bitwise submits Uniswap ETF application: Can DeFi + ETF ignite a new narrative in crypto?

In February 2025, the U.S. SEC concluded its investigation into Uniswap Labs. One year later, on February 6, 2026, asset management firm Bitwise officially submitted a registration statement for the Bitwise Uniswap ETF to the U.S. Securities and Exchange Commission. This marks the first formal ETF application targeting the decentralized exchange governance token UNI.

Meanwhile, the crypto market is experiencing intense volatility. According to data from Gate as of February 6, 2026, the price of UNI has dropped approximately 12.4% over the past 24 hours, trading between $2.95 and $3.76, with a current price of around $3.26.

Breaking the Ice: The Birth of the First DeFi Protocol ETF

Asset management giant Bitwise has taken a historic step. As a pioneer in crypto asset management, Bitwise officially submitted the S-1 registration for the Bitwise Uniswap ETF to the SEC in early February 2026.

The official investment objective of this fund is to seek exposure equivalent to the value of Uniswap held in trust, net of trust operating expenses and other liabilities.

According to the filing, the fund will directly hold UNI tokens, initially without staking yields. If approved, Coinbase Custody Trust Company will serve as the fund’s custodian.

This application is not an isolated event but builds on years of experience by Bitwise. Since July 2021, Bitwise has offered a private fund for qualified investors—the Bitwise Uniswap Private Fund—as a traditional investment vehicle for professional investors to access UNI.

Why Uniswap? The Confidence of the DeFi King

Among thousands of crypto projects, Bitwise chose Uniswap as the first DeFi protocol ETF target, supported by solid reasoning.

Uniswap is the leading decentralized trading protocol on Ethereum, allowing users to swap tokens directly without intermediaries. Its governance token UNI is not only a “shareholder certificate” of the protocol but also grants holders voting rights over the protocol’s future development.

In terms of market position, Uniswap has long ranked first in decentralized exchange trading volume. As of February 6, 2026, UNI’s market cap exceeds $2.06 billion, ranking 39th among all cryptocurrencies.

The protocol’s fundamentals are also strong. Uniswap’s total value locked (TVL) reaches approximately $2.97 billion. In the past 24 hours alone, the protocol generated over $2.63 million in fees, with project revenue of $160,000, demonstrating healthy cash flow potential.

Market Reaction: Short-term Pressure vs. Long-term Value

The news of the ETF application did not immediately boost UNI’s price, closely related to the overall environment of the recent crypto market.

As of February 6, 2026, data from Gate and major exchanges show that the token has experienced significant volatility:

This price performance is directly related to macro market conditions. The entire crypto market is undergoing a significant correction, with total market cap dropping nearly 10% in 24 hours, and the market sentiment index falling into the “Extreme Fear” zone.

Some analysts point out that over $1.03 billion in Bitcoin long positions have been liquidated, triggering deleveraging across the market, which inevitably affected mainstream tokens like UNI.

Regulatory Shift: From Confrontation to Cooperation

The Bitwise Uniswap ETF application marks a key turning point. Regulatory attitudes toward crypto assets, especially DeFi protocols, are shifting from adversarial scrutiny to framework-based acceptance.

In February 2025, the SEC concluded its investigation into Uniswap Labs, removing a significant obstacle for this ETF application. This change occurs amid a broader regulatory environment in the U.S. that is becoming more friendly toward digital assets.

Current government leaders have also sent positive signals. Former President Donald Trump has repeatedly emphasized the goal of making the U.S. the “world’s crypto capital.” Meanwhile, SEC Chair Gary Gensler and CFTC Chair Rostin Behnam have launched a “Crypto Plan” aimed at modernizing regulations.

Policymakers are increasingly recognizing that decentralized protocols like Uniswap are fundamentally different from traditional centralized financial entities. This shift in understanding opens the door for DeFi protocols to develop financial products.

A New Narrative Emerges: The Fusion of DeFi + ETFs

The integration of traditional finance and decentralized finance is giving rise to a new investment narrative. The emergence of the Bitwise Uniswap ETF may just be the beginning of this trend.

For traditional investors, ETF structures provide a regulated way to access DeFi assets. They bypass complex technical barriers such as private key management and wallet security, enabling investors unfamiliar with crypto technology to participate in DeFi growth.

For DeFi protocols, ETFification means a broader investor base and more stable demand. Just as Bitcoin ETFs have brought continuous institutional inflows into Bitcoin, DeFi ETFs could generate new demand for high-quality protocol tokens.

The deeper impact lies in the transformation of value capture mechanisms. Many early DeFi governance tokens were conservatively designed to avoid regulatory risks. But as clarity around regulation increases, protocols exploring mechanisms like protocol fee activation—such as Uniswap—may achieve fairer market valuation through ETF products.

Potential Challenges: The Road Is Not Smooth

Despite promising prospects, the development of DeFi ETFs faces multiple challenges. Regulatory approval is the primary hurdle. While the environment has become more friendly, the SEC’s standards for approving DeFi protocol ETFs, custody solutions, and compliance requirements remain unclear.

Market volatility is another major concern. DeFi tokens tend to be more volatile than traditional assets, and even more so than Bitcoin. Developing financial products suitable for traditional investors based on highly volatile underlying assets requires innovative risk management solutions.

Technical risks cannot be ignored. Although Uniswap’s protocol has undergone multiple audits and operates stably, risks related to smart contracts and underlying blockchain networks (such as Ethereum) could still impact ETF products.

Finally, the competitive landscape may change. If the Uniswap ETF is approved, it could trigger a wave of similar DeFi protocol ETF applications, potentially dispersing liquidity and market attention.

Summary

On the Gate platform, UNI remains one of the most actively traded tokens, reflecting ongoing market interest in this DeFi leader.

The application for the Bitwise Uniswap ETF is just the first step on this long journey. Regardless of the outcome, it clearly signals a trend: DeFi is moving out of the experimental labs of tech enthusiasts and into the mainstream financial stage.

With Bitcoin ETF success paving the way, clearer regulatory frameworks, and increasing institutional demand for innovative financial products, the combination of DeFi and ETFs may not only be a new narrative but also a crucial turning point for the crypto industry’s integration into mainstream finance.