Bitwise, a well-known exchange-traded fund (ETF) issuer, has proposed the introduction of a new ETF focused on investing in companies with significant Bitcoin balance sheets. The planned Bitwise Bitcoin Standard Corporations ETF will target companies that have accepted the “Bitcoin standard, which means they have at least 1,000 Bitcoin in their corporate reserves.
To be eligible for inclusion, companies must have a minimum market capitalization of $100 million, daily trading liquidity of at least $1 million, and a public float of less than 10%. This ETF differs from other ETFs in that it allocates investments based on the value of each company’s Bitcoin holdings rather than its market capitalization. As a result, companies like MicroStrategy, which hold a massive amount of Bitcoin, could hold a larger weight in the ETF than companies like Tesla, despite having a much smaller overall market cap.
The filing comes as more corporations incorporate Bitcoin into their treasury operations, a trend that has seen the cryptocurrency’s value rise dramatically this year. Recently, KULR Technology Group disclosed its own Bitcoin investment, which caused a significant increase in its stock price.
Other ETF registrations also highlight publicly traded corporations’ rising interest in Bitcoin. Bitwise’s suggestion underscores the growing trend of firms incorporating Bitcoin into their financial strategy, indicating a shift toward wider cryptocurrency use in the corporate sphere.
