Bitwise has proposed a new exchange-traded fund (ETF) that focuses on businesses holding large amounts of Bitcoin
$94,799.56
in their corporate reserves.
According to the proposal filed on December 26, the Bitwise Bitcoin Standard Corporations ETF would include companies with at least 1,000 Bitcoin in their treasury.
The announcement comes as public companies increasingly add Bitcoin to their treasuries, often to attract investors. This year alone, Bitcoin has gained over 100% in value, further boosting its appeal.
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What sets this ETF apart is how it assigns weight to companies. Instead of focusing on their market size, the fund would rank companies based on the value of their Bitcoin holdings. No company could represent more than 25% of the fund’s value, ensuring diversification.
For example, MicroStrategy, which holds over 444,000 Bitcoin, would carry more weight in the ETF than Tesla, which has less than 10,000 Bitcoin despite being a much larger company overall.
Under Bitwise’s structure, MicroStrategy would have a larger share of the ETF because of its large Bitcoin holdings.
To qualify, these Bitcoin-holding companies must also have a market value of at least $100 million, an average daily trading volume of over $1 million, and fewer than 10% of their shares available for public trading.
Bitwise’s filing coincided with another ETF proposal from Strive Asset Management, a company founded by Vivek Ramaswamy. Recently, the company has sought approval for its Bitcoin Bond ETF. What makes Strive’s Bitcoin Bond ETF stand out? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
