Bitwise files for Bitcoin Standard Corporations ETF, investing in companies with significant Bitcoin reserves, offering new investment opportunities.
Bitwise, a popular exchange-traded fund (ETF) issuer, has filed to launch a new fund focused on companies that hold significant amounts of Bitcoin. The new ETF is called Bitwise Bitcoin Standard Corporations ETF. It will invest in companies that have adopted the ‘Bitcoin standard’ and have at least 1,000 Bitcoin in the corporate reserves.
There are certain conditions that must be fulfilled by companies to be included in the ETF. They must have a minimum of 1,000 BTC in their corporate treasury. Additionally, the company must be valued at a minimum of $100 million. Also, the company needs to have an average of $1 million in average daily liquidity. Finally, the company must have a public float of at least 10%.
How this new ETF will weight its holdings will be different than other ETFs. The majority of ETFs weigh a company according to its market capitalization. However, Bitwise will calculate its weight based on the amount each company has in Bitcoin reserves. The weight of each company in the fund will be capped at 25%.
Bitwise Bitcoin ETF to Prioritize Bitcoin Holdings Over Market Cap
The ETF would have weighted investment in Tesla at $1.42 trillion and 9,720 Bitcoin, for example, while MicroStrategy, boasting 444,262 Bitcoin but a mere $83.5 billion market value, would have been weighted more heavily. MicroStrategy holds such a large number of Bitcoin compared to Bitwise, Bitcoin makes up a much larger part of the ETF.
Through the Bitwise Bitcoin Standard Corporations ETF, investors now have a new means of gaining exposure to companies that hold Bitcoin as a central pillar of their financial strategy. This ETF specifically looks at firms that have Bitcoin on their balance sheets and believe in its value.
Investors would have a new investment opportunity if this ETF is eventually approved. Additionally, it demonstrates Bitcoin’s increasing integration into the business world. As a result, more companies are coming to realize and apply Bitcoin to their financial strategy.
