Bitwise Registers Uniswap ETF Trust: Santiment Suggests a UNI Price Rally

Core Insights - Bitwise has registered a Delaware statutory trust named Bitwise Uniswap ETF, indicating a potential future launch of an ETF linked to Uniswap [1] - The registration follows the SEC's closure of its investigation into Uniswap Labs in February 2025, which examined whether activities related to the decentralized exchange violated U.S. securities laws [2] Legal and Regulatory Considerations - Analysts note that the focus has shifted to structure, liquidity, and trade execution as legal uncertainties diminish, with any ETF needing to demonstrate clear pricing and sufficient volume [3] - Approval for the ETF will likely depend on regulators' assessment of Uniswap's decentralization and the reliability of its on-chain liquidity [3] Governance and Internal Issues - Uniswap is recognized as a highly liquid decentralized exchange but is currently facing challenges related to fragmented volumes and internal governance issues [4] - There is growing scrutiny over governance, with community members arguing that tokenholders gain limited economic benefits from governance rights [5] - Tensions have escalated following Uniswap Labs' launch of Unichain without DAO approval, leading to concerns about the concentration of control [5] Recent Developments in Governance - The UNIfication governance vote merged the Uniswap Foundation into Uniswap Labs, which critics argue has weakened DAO independence [6] - UNI's market performance has suffered, trading around $4.78, down approximately 60% over the past year [6] Market Performance - UNI's market cap has decreased by $4.15 billion, dropping it to the 32nd position among the largest crypto assets [7] - Despite recent price weakness, Uniswap processed about $859 million in trading volume in the last 24 hours, and the protocol facilitated nearly $1 trillion in volume over the past year [8][9] Sentiment and Potential Price Movement - Sentiment data indicates a potential short-term price reversal for UNI, with high negative commentary suggesting that retail selling may be exhausting [8]