Bitwise Files for Spot Uniswap ETF as Daily UNI Burn Hits Record High, Yet Price Falls 15%

Bitwise Investments has taken a major step toward bringing Uniswap (UNI) to the broader financial market, filing an S-1 registration with the US SEC (Securities and Exchange Commission) for a spot Uniswap ETF.

The announcement marks a potential milestone for UNI adoption in institutional portfolios, yet the token’s price still struggles.

Bitwise Filed for a Spot Uniswap ETF as Daily UNI Burn Hits a New High

Bitwise recently registered the “Bitwise Uniswap ETF” entity in Delaware, a procedural move identical to previous spot ETF filings.

“With the regulatory clouds cleared and Bitwise leading the charge, $UNI is about to become a staple in every institutional portfolio,” Whale Factor remarked.

The proposed fund, if approved, would track UNI’s spot price, excluding expenses, with Coinbase Custody serving as the custodian.

At launch, the ETF would not include staking, signaling a straightforward exposure product for investors.

The filing coincides with notable on-chain activity. Daily UNI burns have surged sharply in February, according to Dune Analytics, alongside higher Uniswap trading fees.

As of early February, over 100 million UNI tokens have been burned, valued at approximately $597 million, with the annualized burn rate exceeding $36 million.

Daily UNI Burns. Source: Dune Analytics

Daily charts indicate that the pace of UNI burning is accelerating, reflecting strong trading activity and the impact of the protocol’s Fee Switch, which converts a portion of trading fees into burned UNI.

Uniswap Daily Fees. Source: Dune Analytics

Despite these metrics, UNI’s price has remained relatively subdued, down by almost 15% over the last 24 hours.

As of this writing, the UNI token was trading at $3.20, down 13.73% amid broader market bearish sentiment.

Uniswap (UNI) Price Performance. Source: BeInCrypto

Whales Accumulate UNI Amid Fee Switch Uncertainty and Rising Exchange Flows

Notwithstanding, on-chain data shows that large investors are strategically accumulating the token. Lookonchain reported that whale address 0x9671 sold 242 XAUT ($1.19 million) and 461 ETH ($985,000) to purchase 682,087 UNI worth $2.58 million.

This highlights confidence in UNI’s medium-term upside. However, analysts remain divided on whether the Fee Switch’s early performance justifies optimism.

BeInCrypto reported in December that initial revenue from the Fee Switch fell short of governance expectations, with some analysts questioning whether the early data reflects flawed assumptions or simply incomplete rollout effects.

Uniswap founder Hayden Adams cautioned that “conclusions are premature and based on misleading assumptions,” suggesting the protocol’s long-term revenue potential may not yet be fully realized.

At the same time, the amount of UNI flowing to exchanges continues to rise, signaling potential selling pressure.

CryptoQuant data shows that Uniswap reserves on exchanges have climbed, raising concerns that price support could be tested if selling intensifies.

Uniswap Reserves on Exchanges. Source: CryptoQuant

Historical trends illustrate that higher exchange inflows often precede short-term volatility, even amid strong protocol fundamentals.

Overall, the Bitwise spot Uniswap ETF filing and the accelerating UNI burn indicate growing institutional interest and protocol activity.

While on-chain metrics signal strong engagement and active fee generation, market forces, such as increased UNI inflows to exchanges and ongoing price weakness, suggest volatility could remain elevated in the near term.

As the SEC reviews the ETF application, investors will be watching closely to see if this product opens the door for wider mainstream adoption of UNI, potentially providing a bridge between DeFi liquidity and traditional capital markets.