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Key Takeaways
- Bitwise’s ETF will include firms with over 1,000 BTC, weighted by Bitcoin treasury size rather than market capitalization.
- The ETF proposal highlights growing corporate adoption of Bitcoin amid its strong price performance this year.
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Bitwise Asset Management filed with the SEC to launch the Bitcoin Standard Corporations ETF, targeting public companies holding at least 1,000 Bitcoin in their corporate treasuries.
According to the filing, the fund will focus on equity securities of firms meeting specific criteria, including a minimum market capitalization of $100 million, daily liquidity of at least $1 million, and a public float below 10%.
The proposed ETF will weight portfolio holdings based on companies’ Bitcoin holdings rather than market capitalization, with a 25% cap on individual constituents.
For example, MicroStrategy, holding 444,262 Bitcoin, would have a larger allocation than Tesla, despite Tesla’s higher market cap.
The filing comes as Bitcoin has gained 117% this year, briefly surpassing $108,000 before settling near $95,500 at press time.
Corporate interest in Bitcoin has increased, as demonstrated by KULR Technology Group’s recent $21 million Bitcoin purchase, which boosted its stock price by over 40%.
The ETF will be classified as non-diversified under the Investment Company Act of 1940, potentially concentrating investments in fewer companies than diversified funds.
Quarterly rebalancing will maintain alignment with the index based on market conditions and changes in constituent companies’ Bitcoin holdings.
The fund will trade on NYSE Arca, pending SEC approval. This filing follows a similar submission by Strive for an ETF focused on convertible bonds of Bitcoin-heavy firms.
This new filing complements the existing Bitwise BTC ETF, which currently holds net assets of approximately $3.9 billion, with shares trading around $51.86, according to Bitwise data.
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This article first appeared at Crypto Briefing
